"It's an aggressive price," says Bill Murney, a senior vice president with CB Richard Ellis Inc. who specializes in hotel investment. "But, it's a high-quality asset with significant upside. And, pricing is driven by the lack of hotel investments available in this market."
Bought from Walton Street Capital, the hotel is located in the Scottsdale Perimeter Center, which one of the fastest growing office parks in the Phoenix area. "Scottsdale Marriott is a great asset," Murney says. "It's in a high-end area where the majority of the growth is occurring and it has a terrific opportunity to continue to do well."
The five-year-old hotel sits beside two championship-level golf courses at the Tournament Players Club. For previous story, click here.
Murney tells GlobeSt.com that Scottsdale has not had any significant hotel supply added to the market in more than five years. At the same time, many new office buildings have been built and residential growth has exploded. "All the demand generators are there," he says.
Murney adds Scottsdale is one of the hottest hospitality markets in the nation. "It's doing very well…Over the past 12 months, it has experienced double digit RevPAR growth," he says. Currently, the city has 63 hotels with a combined total of more than 11,000 rooms, according to the Scottsdale Convention & Visitors Bureau.
Marriott also owns the Camelback Inn in Scottsdale. The asset is currently being repositioned as a JW Marriott, according to Murney.
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