Pheonix – A joint venture among funds managed by Trinity Real Estate Investments LLC (“Trinity”) and funds managed by Elliott Management Corporation (“Elliott”) acquired the JW Marriott Desert Ridge Resort & Spa (the “Resort”). This transaction follows Trinity and Elliott’s joint purchase of the Grande Lakes Orlando Resort in December 2018, advancing the partnership’s strategy of acquiring large hotel properties with value-add opportunity.
Spanning 396 acres, the Resort features a 950-room hotel, 212,500 square feet of flexible meeting space, seven food and beverage options, and numerous amenities including five pools, a lazy river, a world-class spa, and two championship golf courses designed by Arnold Palmer and Nick Faldo.
“We are pleased to continue our strategic partnership with Elliott through the acquisition of another world-class resort destination,” said Sean Hehir, Managing Partner of Trinity. “Importantly, we managed to purchase this trophy asset at an attractive basis well below replacement cost, reflecting our ability to source and close deals that align with our strict investment parameters. We look forward to applying our proven value-add platform to drive enhanced operational and financial performance.”
The resort is well-positioned to benefit from demand drivers for business and leisure travel due to Phoenix and Scottsdale’s strong economic growth and rising competitiveness in the group and convention market. Due to its geographic proximity and access to markets throughout California and the Southwest, Phoenix serves as the primary commercial and cultural hub of the Southwest United States and is a preferred business destination.
Tim Mackey, portfolio manager at Elliott responsible for commercial real estate in the Americas, added, “Desert Ridge is a strategic complement to the Grande Lakes Resort in Orlando, Florida, which we acquired with Trinity in December 2018. Large luxury group-business resort and conference center properties continue to be attractive investment opportunities.”
Trinity and Elliott intend to implement a multi-million dollar capital improvement plan to further enhance the Resort’s offerings and unlock embedded value. In addition to guestroom renovations, planned improvements include upgrades to the Resort’s meeting spaces and ballrooms, water features, and food offerings. Moreover, Trinity and Elliott will consider opportunities to expand the Resort and will leverage their institutional knowledge and experience owning and operating big-box convention hotels to drive higher-rated transient business.
