Bleecker Seaman, managing director of Los Angeles-based Lowe Enterprises, says renovations will start at once on the boutique hotel at 211 Old Santa Fe Trail in the CBD and be completed in late 2008. He says that the seller, Noble House Hotels & Resorts Inc. of Seattle, had started room renovations. Not only will Lowe Enterprises continue the room upgrades, but it has work planned for the exterior and 10,000 sf of meeting room space too.

"This is the kind of hotel that is representative of our portfolio as a whole," Seaman says. He tells GlobeSt.com that the asset was underwritten for a five-year hold.

Lowe's wholly owned subsidiary, Destination Hotels & Resorts, manages the 119-room Royal Palms Hotel and Casitas at 5200 E. Camelback Rd. in Phoenix and it will take over management of the Santa Fe hotel from Noble House's management team. "We think there's a synergy between Phoenix's luxury hotel market and that of Santa Fe," he says, adding Loretto will continue to operate as an independent.