A joint venture between Partners Group, a global private markets firm, acting on behalf of its clients, and funds managed by Trinity Investments, have acquired the Scottsdale Plaza Resort & Villas, located in Paradise Valley, Ariz. Rockpoint, a Boston-based real estate private equity firm, and Highgate, a hotel management, investment and development company, sold the property. Other terms were not disclosed.
The Scottsdale Plaza Resort & Villas has 404 rooms spread across the central hotel and surrounding villa suites, 50,000 square feet of meeting space, five pools, tennis courts, a fitness center, and luxury spa amenities. The hotel is located near Old Town Scottsdale and downtown Phoenix and is surrounded by the Sonoran Desert with nearby hiking trails and nearly 40 acres of gardens. Originally built in 1976, the hotel has a deep-rooted legacy as one of the largest operated resorts in Arizona. The transaction also includes the potential for expansion with entitlements secured by the seller.
In recent years, Phoenix has become one the most populous and fastest-growing metro areas in the U.S., and is a leading destination market, hosting more than 23 million visitors annually. The resort is located on nearly 40 acres of land in one of Phoenix’s nicest towns, Paradise Valley, and is directly adjacent to The Ritz-Carlton Hotel & Residences, Paradise Valley, and its surrounding developments.
“The Scottsdale Plaza Resort & Villas is a prime example of an excellent property coming to market in need of a significant capital investment from a partnership like Trinity and Partners Group that can deliver a development plan for future growth,” Sean Hehir, managing partner, president, and CEO of Trinity, said in a statement. “We are pleased to work with Partners Group again as we execute on our repositioning and enhancement plan for this already well-performing asset.”
As part of its acquisition strategy, Trinity will execute a targeted capital plan intended to create a cohesive resort experience, specifically catering to large groups, friends and family, and premium leisure travelers. The resort will remain unencumbered of brand and will continue to be managed by Highgate.
“Rockpoint and Highgate executed on a shared vision for the resort, and we are pleased to have added significant value through several property enhancements, expense saving initiatives and strategic revenue optimization,” said Aric Shalev, a managing member and co-president at Rockpoint. “This investment underscores Rockpoint’s ability to collaborate with best-in-class operating partners and identify and add value to high-quality assets in high-growth markets. We believe the resort is well-positioned to build on its rich heritage under new ownership.”
During its ownership, Rockpoint and Highgate have maintained the property’s heritage while also making upgrades like instituting a membership arrangement with Preferred Hotels and Resorts, modernizing the hotel’s e-commerce presence and implementing institutional revenue management strategies. These enhancements positioned the property to benefit from strong underlying market fundamentals following the COVID-19 pandemic.
Newmark acted as broker for Rockpoint and Highgate on this transaction.