The 44th and McDowell Hotel Group, an affiliate of the Caliber Distressed Real Estate Income Fund, a private equity fund managed by Caliber Companies, acquired the four-story, 228-room Holiday Inn Hotel & Suites Phoenix Airport North in Phoenix.
The hotel is the Company’s third hospitality acquisition in three years. The Holiday Inn Hotel & Suites will remain operating under the same brand. Heavlin Management Company will manage the hotel’s day-to-day operations.
IHG (InterContinental Hotels Group) agreed to extend the 10-year Holiday Inn & Suites franchise agreement following a brand-mandated property improvement plan of $1.3M. Caliber will invest an additional $3.7M in capital improvements including building modernization, restaurant renovation, cost cutting measures, space enhancements for group events and wedding business, signage and more.
“Working with Caliber on this property, we’ll implement efficiencies gained from shared resources with the Crowne Plaza property including dual sales force and revenue management to capture additional market share,” said Frank Heavlin, president of Heavlin Management Company. “We value our partnership with Caliber and we’ll be strategically creative using techniques like the IHG hotel brand to drive business and central purchasing to increase profitability of assets for a win-win.”