The 147-room hotel was the Boston-based AEW's only hotel asset in Arizona, says Jeff Cunningham of CB Richard Ellis Inc.'s Phoenix office. He and CBRE's Bill Murney in Phoenix and Dipan Patel in Atlanta represented AEW.
Cunningham tells Globest.com that the hotel will need to be re-flagged since it will soon be taken out of the Hampton Inn system because it has exterior corridor entrances. Hampton Inn now requires its flagged hotels to offer interior corridors.
"Patel is in the process of seeking a Best Western flag," Cunningham says. He adds that the hotel did about $1.6 million a year in revenues as a Hampton Inn and will likely bring in about the same amount as a Best Western.
The hotel is located in Phoenix's Metro Center submarket along Interstate 17. "It's a quality asset and demand is built into the market," Cunningham explains. "Within a five-mile radius there are about five million sf of office and industrial space and corporate employers." The hotel is the second asset that Southwest Hospitality has purchased in Phoenix although it owns several hospitality properties throughout Arizona, according to Cunningham.
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