The hotel was developed in 1987 on 65 acres at 7575 E. PrincessDr. The asset caught Strategic Hotels' eye for several reasons, oneof which was occupancy averages about 79% in a market thattypically boasts a 75% rate. "We think this hotel defines themarket in a lot of ways and is the best meeting hotel in themarketplace," explains James Mead, Strategic Hotels' CFO andexecutive vice president. "We think the asset is very beautiful andcustom-made for the Arizona desert."

Strategic Hotels, which already owns the Hyatt Regency at CivicPlaza in Downtown Phoenix, already is thinking of uses for the 15acres. "The plans for the additional land are to add meeting spaceto increase what's already in the hotel," Mead says, adding anotherpossibility is more rooms, pending city approval.

Although the hotel is nearly 20 years old, Mead tellsGlobeSt.com that little will be done to upgrade it. "It's in verygood condition," he explains. "We might make some changes to theretail, but other than that, the hotel will stay as is." Themanagement team also will remain in place, with Fairmont continuingto oversee day-to-day operations.