Park Inn Airport is Elite Hospitality's first hotel acquisitionin the Phoenix Valley, according to Jeff Cunningham, an investmentsales broker in Phoenix for CB Richard Ellis Inc., who negotiatedthe deal along with partner Bill Murney. Cunningham tellsGlobeSt.com that the seller, Los Angeles-based AIG SunAmerica LifeInsurance, took possession of the 20-year-old hotel at 2803 E.Valencia Rd. about two years ago. AIG chose not to put the propertyon the market and invested in some cosmetic upgrades. But,Cunningham "bird-dogged" the hotel and brought AIG an offer fromElite Hospitality, a local company headed by Mike Desai, that "wasgood enough for them to sell."

Elite Hospitality intends to re-flag the property as a QualityInn hotel, Cunningham says. "Park Inn doesn't have a strongpresence in the Valley and (Mike Desai) sees the potential for thehotel with the new flag," he explains. "The deal doesn't pencil outwithout the re-branding."

In 2003, the hotel, located near Tucson International Airport,posted $50,000 of net operating income and 45% occupancy. EliteHospitality's goal is to push room revenue to $15,000 a year,according to Cunningham.