Acore Capital Lends $88M on Arizona Hotel Purchase
By Andrew Coen August 1, 2023 10:43 am
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Global Hospitality Investment Group (GHIG) has nabbed $88 million of acquisition financing for the purchase and renovation of a Doubletree-branded resort in Arizona, Commercial Observer can first report.
Acore Capital provided the floating-rate loan for GHIG’s acquisition of the DoubleTree Resort Scottsdale Paradise Valley from Southwest Value Partners for $115.5 million. The debt package carries a three-year term with two one-year extension options.
Southwest Value Partners, which is run by former Phoenix Suns owner Robert Sarver, acquired the resort property for $100 million in January 2020.
Newmark (NMRK) procured the debt package with a team led by Jordan Roeschlaub, Dustin Stolly, Nick Scribani and Tyler Dumon. The lodging capital markets team at Newmark led by Tony Malk, Nick Pappas and Greg Morgan arranged the hotel sale.
Kory Klebanoff, managing director and co-head of eastern region originations at Acore, said the deal came together in large part to a longstanding relationship the alternative lender has with Kevin Colket, who prior to founding GHIG in 2019 spent 11 years at Starwood Capital Group. He noted that the Phoenix metro area is a hot hospitality market that has seen a 19 percent increase in revenue per available hotel rooms since 2019.
Located at 5401 North Scottsdale Road in Scottsdale 13 miles from Downtown Phoenix, the 378-room resort property spans more than 23 acres with over 40,000 square feet of flexible indoor and outdoor meeting space. Its amenities include two outdoor pools, tennis courts and a fitness center.
“It’s a great resort hotel site with big rooms and high ceilings with all the bones of a luxury asset, said Klebanoff of the DoubleTree property, which opened in the mid-1980s under the Loews Hotels brand.
Officials at GHIG did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
