Private investment group Waramaug Hospitality along with Interstate Hotels & Resorts have acquired the 257-room Hilton Phoenix Airport Hotel for an undisclosed price. Interstate will operate the hotel, which is located within the Phoenix Sky Harbor Airport submarket and closed to Arizona State University.
“The Phoenix-Mesa-Scottsdale area is in the midst of a recovery and still 24 percent from peak RevPAR levels, which offers a great opportunity for market upside. The Phoenix market in particular ranked in the top 25 in the nation in occupancy, ADR and RevPAR in 2012 so we see great growth potential in years to come,” said Paul Nussbaum, Waramaug Hospitality’s founder and managing partner. “This particular property is also valuable due to the easy access to the surrounding local destinations as well as close proximity to one of the ten busiest airports in the US, serving 40 million passengers a year.”
The property is slated to undergo a $7.1-million renovation with extensive guestroom, guest bath, corridor, public space, meeting space and food and beverage upgrades.
“During our experience operating the Hilton Phoenix Airport Hotel, we’ve produced a successful bottom line and are looking forward to continuing success with Waramaug’s acquisition of the hotel and planned renovations,” said Leslie Ng, Interstate’s CIO. “We’re pleased to continue working with Waramaug and have truly discovered a recipe for success and profitability through our relationship.”