Carlson, HPT Sell Park Plaza for $8M

PHOENIX-A joint venture has sold the 166-room, 16-suite Park Plaza Hotel in the northwest Black Canyon submarket. Carlson Hotels and HPT SPES II pocketed $8 million for selling the 20-year-old asset to a Flagstaff, AZ buyer.

Situated on 2.3 acres at 2641 W. Union Hills Dr., the hotel began life as a Wyndham Garden Inn and underwent a $3 million renovation in 2005. The new owner, Krista R. Corp., will change the flag, likely to Comfort Inn.

“Krista was a very solid buyer. The company had the best offer, it came to us with the best in terms of price, and the strategy for the property under their ownership,” says Jeff Cunningham, senior associate with CB Richard Ellis’ Phoenix office. Cunningham and Tom Ives, SVP with CBRE’s Atlanta, GA office represented the seller, while the buyer relied on in-house representation.

Cunningham tells GlobeSt.com that the hotel had a 60% occupancy and an $85 ADR, which is slightly higher than the market. He points out that the Black Canyon submarket, along Interstate 17, is enjoying new revenue sources, as well as already built-in generators that have been in existence for awhile.

The hotel houses business travelers from companies in the immediate area including PetSmart Inc., Farmers Group Inc., Honeywell Inc., Discover Financial Services LLC and USAA. “You have some excellent corporations in that area, while the 101 is only a couple of miles away, and gives you good access to the Scottsdale and Glendale markets,” Cunningham adds.