Hotel JV Starts Redressing Phoenix Inn Brand

Aimbridge teamed with New York City-based Merrill Lynch Global Principal Investments and JMI Realty Inc. of San Diego to buy the Phoenix Inn Suites' brand. The makeover plan, part of the acquisition strategy, is aimed at lobbies and soft goods for nearly 1,000 rooms. "We wanted to understand the market and the customers' needs," says Jack McHugh, senior vice president of the Carrollton-based Aimbridge. "We're scaling the renovations by location." The test property is the Phoenix Inn at 12712 SE 2nd Circle in Vancouver, WA.

McHugh tells GlobeSt.com that the limited-service portfolio of suburban hotels averages eight years old with occupancy in the high 60% range. Along with the property makeovers, McHugh says the JV is eyeing other portfolios to buy to expand the brand, but only in the Pacific Northwest. "But, the play has to be right," he stresses.

The JV bought the brand in April 2006. Since then, the loner, a Phoenix Inn at 2310 E. Highland Ave. in Phoenix, has been sold, but Aimbridge has retained asset management as part of the trade.

McHugh says the renovations, the largest in the 38-year-old brand's history, will be completed by summer. In Oregon, the hotels are located at 3410 Spicer Dr. in Albany, 15402 NW Cornell Rd. in Beaverton, 300 NW Franklin Ave. in Bend, 850 Franklin Blvd. in Eugene, 14905 Bangy Rd. in Lake Oswego, 1590 West Court NE and 4370 Commercial St. in Salem and 9575 SW Locust St. in Tigard. The next Washington property to undergo a makeover is situated at 415 Capitol Way North in Olympia.