The Cranston, RI-based buyer is planning to invest another $10 million into renovations at the hotel, built in 1973 at 5402 E. Lincoln Dr. Procaccianti, which acquired the nearby Paradise Valley Resort & Spa in mid-2005, will oversee the renovation and manage the hotel, keeping the Hilton brand in place.
"We like the Phoenix area, in particular the Scottsdale market for the long-term value," says Rob Leven, Procaccianti's chief investment officer. "It doesn't indicate we'll be buying anything there right now. If there's an opportunity, we'll pursue it."
Leven tells GlobeSt.com that the Hilton Resort & Spa fits within the portfolio parameters, which call for upscale, full-service hotels. "You won't see us buying too many older properties with a lot of obsolesces," he adds. "Sometimes, a property can be older, but built with more of a forward thinking than others."
The Hilton Resort is more than 30 years old, but its average daily rate runs in the high $100 range. Its occupancy is in the low 80%, which is slightly ahead of the market standard, according to Leven.
Under the Southern California-based Griffin Group's reign, renovations focused on overhauling the HVAC system and adding a 10,000-sf ballroom plus junior suites and executive rooms. As Procaccianti sets up shop, the plan is to upgrade its 45 villas.
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