Arizona Biltmore, the iconic luxury hotel in Phoenix, has changed hands, marking one of the biggest hotel deals in the Valley this year. Henderson Park, the London-based international private equity real estate company, announced the completion of the resort’s acquisition from Blackstone Real Estate for $705 million (or $1 million per key).
The full-service, 705-key resort recently underwent renovations, which sought to make the property appealing for premier leisure, corporate and group guests, driven by the rising demand in the submarket. The hotel was part of Hilton’s Waldorf Astoria Hotels and Resorts and is currently part of the LXR Hotels & Resorts portfolio.
The hotel was sold in January, with the deal closing on May 8, according to a news report. In 2018, Blackstone Real Estate acquired the hotel for $403.4 million from Singaporean sovereign wealth fund GIC Pvt. Ltd, the report added.
The luxury resort will be managed by Pyramid Global Hospitality, with whom Henderson acquired the La Quinta Resort in Palm Springs in 2021.
“This transaction presents a rare and compelling opportunity to acquire a historic but newly refurbished hotel in one of the country’s premier hospitality markets and to both immediately capitalize on accelerated performance and to further enhance the resort’s offering into the future,” said Nick Weber, CEO and founder of Henderson Park. “In Hilton we have a longstanding relationship across our global hospitality portfolio and this, in collaboration with our repeat operating and lending partners, supports our conviction in the opportunity ahead for a special investment.”
Arizona Biltmore was designed by Albert Chase McArthur and originally opened in 1929. It sits on 39 acres of land and is located about 15 minutes from Sky Harbor International Airport.
The property includes more than 200,000 square feet of meeting space, multiple dining venues, seven pools, a waterslide and a 28,000-square-foot spa. The property comprises multiple buildings, which were built since the hotel first welcomed guests in 1929 and until its latest refurbishments.
Henderson Park was advised by Jones Day. Eastdil Secured served as Blackstone’s financial advisor, while Simpson Thacher & Bartlett LLP were Blackstone’s legal counsel.
Morgan Stanley as lead, along with Deutsche Bank and J.P. Morgan, provided a $460 million commercial mortgage loan to finance the transaction. The purchase was completed through funds managed by Henderson Park, including a commitment from Cincinnati-based Western & Southern Financial Group, Inc. and its real estate vertical, Eagle Realty.