Investcorp, Sage Purchase Sheraton Tucson

Though the seller could not be confirmed by press time, the asset at 5151 E. Grant Rd. was part of the 38-hotel, $4-billion portfolio Host Marriott Corp. in New York City acquired from Starwood Hotels and Resorts Worldwide Inc. in November 2005. At the time, Starwood, headquartered in White Plains, continued to manage the assets it sold. According to Host Marriott's website, the Sheraton Tucson remained one of its assets until recently.

Peter Petron, principal with the New York City buyer, says Investcorp has had holdings in Phoenix , but Tucson is new territory. "We're a deal-oriented group," he explains. "If the deal makes sense in terms of the asset and street location in the market, we'll pursue it."

He says the Sheraton Tucson made sense for Investcorp and Sage because of the booming market and asset upside. "We like assets that provide opportunity through targeted, capital improvements or timing relative to what's going on in the marketplace, and where we think we can make money for ourselves and our investors," he tells GlobeSt.com. "Here, we see a combination of all those factors."

The Sheraton Tucson's daily rate ranges from $109 to $149. Though the transaction is Investcorp's second with the Denver-based Sage Hospitality, Petron says it likely won't be the last. "They've been an excellent partner," he adds.