Bleecker Seaman, managing director of Los Angeles-based LoweEnterprises, says renovations will start at once on the boutiquehotel at 211 Old Santa Fe Trail in the CBD and be completed in late2008. He says that the seller, Noble House Hotels & ResortsInc. of Seattle, had started room renovations. Not only will LoweEnterprises continue the room upgrades, but it has work planned forthe exterior and 10,000 sf of meeting room space too.

"This is the kind of hotel that is representative of ourportfolio as a whole," Seaman says. He tells GlobeSt.com that theasset was underwritten for a five-year hold.

Lowe's wholly owned subsidiary, Destination Hotels &Resorts, manages the 119-room Royal Palms Hotel and Casitas at 5200E. Camelback Rd. in Phoenix and it will take over management of theSanta Fe hotel from Noble House's management team. "We thinkthere's a synergy between Phoenix's luxury hotel market and that ofSanta Fe," he says, adding Loretto will continue to operate as anindependent.