"This was a non-core asset," explains Romy Bhojwani, a seniorvice president with Jones Lang LaSalle Hotels, who represented theseller in the transaction. "They had identified the Phoenix hotelas a potential for-sale asset as part of their portfoliorationalization strategy in which they will continue to own assetsin luxury space and prime locations." The company began to shiftits focus to the higher end of the spectrum three to four yearsago, he says, adding it does not plan to sell the ScottsdalePrincess, a "five diamond" property in neighboring Scottsdale thatis part of the more up-market Fairmont Hotels chain.

In addition to its 696 rooms, the Hyatt Regency has 48,000 sf ofmeeting space, three food and beverage outlets and a six-storylobby atrium. In Bhojwani's opinion, the hotel at 122 N. 2nd St.will require a "significant" capital infusion to reestablish itsprominence in the market.

Bhojwani says the buyer plans to undertake a complete renovationof both the rooms and public spaces. He estimates DiNapoli willprobably have to spend $15 million to $20 million on upgrades andrepairs.