Caliber Hospitality, a division of Caliber - The Wealth Development Company, acquired the seven-story, 232-room, Hilton Tucson East in Tucson, Ariz., for $9.27 million. The hotel is located in the Tucson Business District and has 12,000 square feet of meeting/convention space, a resort-style pool and upgraded dining facilities.
Purchased with private investor equity, in partnership with the Caliber Distressed Real Estate Income Fund, Caliber plans an $8-million renovation for the hotel. The Hilton Tucson East purchase expands Caliber’s lodging investment portfolio to six hotel properties, in both Arizona and Alaska, and includes brands such as Crowne Plaza, Hampton Inn & Suites and Holiday Inn & Suites. HMC Hospitality will manage hotel day-to-day operations.
“The Hilton Tucson East is the proverbial ‘diamond in the rough’ that with the proper renovation plan and managerial expertise will be transformed into one of the finest hotels in Caliber’s portfolio,” said Chris Loeffler, CEO and co-founder of Caliber. “The property will provide significant investor value creation as it was purchased approximately 70 percent below estimated replacement cost. Due to its solid market fundamentals, we’ve wanted to expand within Tucson beyond our current single-family and multi-family residential portfolio. This hotel is an excellent opportunity to do just that.”
The hotel is located on 6.36 acres between downtown Tucson and Saguaro National Park, and is along one of Tucson’s main east-west thoroughfares, Broadway Boulevard.
“We’re thrilled to partner with Caliber, and excited to revitalize and restore this property to its original beauty,” said Frank Heavlin, president of HMC Hospitality. “We’ve set into motion our personnel and property plans, in order to elevate services, and provide an exceptional experience for our guests. This hotel will become a diamond in the Caliber /HMC hotel portfolio.”