Dive Brief:
- The Sheraton Phoenix Downtown, a 1,003-key convention center hotel in Arizona’s capital city, has sold in “one of the largest hotel sales in Arizona’s history,” according to a release from JLL, which brokered the transaction on behalf of the seller Blackstone Inc.
- Brookfield acquired the hotel, a company spokesperson confirmed to Hotel Dive Tuesday. The terms of the deal were undisclosed. Blackstone originally acquired the property in 2020 from Marriott International for $268 million.
- The transaction “aligns seamlessly with Brookfield’s hospitality investment strategy” to purchase “high-quality assets in growth markets,” the Brookfield spokesperson said. Meanwhile, the deal follows recent Blackstone hotel deal activity.
Dive Insight:
The Sheraton Phoenix Downtown stands 33 stories tall and is roughly two blocks from the Phoenix Convention Center. The hotel offers 112,000 square feet of meeting and events space, including the 27,200-square-foot Phoenix Ballroom, the largest in the downtown market, according to JLL.
The hotel also benefits from proximity to the Footprint Center, Chase Field and Phoenix Symphony Hall, according to JLL. Additionally, the property borders Arizona State University's Downtown Phoenix Campus and the expanding Phoenix Bioscience Core.
“Phoenix has established itself as one of the most dynamic lodging markets in the United States, with downtown benefiting from diverse demand drivers including expanding convention business, corporate relocations and the growing influence of Arizona State University’s downtown campus,” JLL Senior Director Matt Riley said in a statement. “This transaction validates the strength of the market fundamentals and the appeal of irreplaceable urban assets.”
Last year, local hospitality pros told Hotel Dive that sports tourism and a flourishing manufacturing sector were driving hotel performance gains in the Phoenix metropolitan area.
According to the Brookfield spokesperson, Phoenix “represents one of the nation’s most compelling growth markets, supported by strong demographic tailwinds, a pro-business climate, and rapid expansion across technology and AI-related industries.”
The Sheraton Phoenix Downtown “is ideally positioned at the center of this dynamic environment,” making it an ideal investment opportunity, the spokesperson said.
Following Blackstone’s 2020 acquisition, the hotel completed a $45 million renovation that modernized its amenities and design, according to JLL. In addition to an outdoor pool and 4,300-square-foot fitness center, the property has three food and beverage concepts, including signature restaurant Carcara and a bar and grill on the fourth-floor poolside terrace.
The property offers eight different room types, from traditional king and double rooms to 1,625-square-foot Governor’s Suites. All of the guest rooms offer views of the city or the surrounding mountain ranges.
The deal comes after Blackstone sold the Turtle Bay Resort on Oahu, Hawaii, for $725 million in 2024. Earlier this year, the firm acquired the Kimpton Hotel Eventi in New York City for $175 million as well as the 785-key Sunseeker Resort Charlotte Harbor along the Gulf Coast of Florida for $200 million.
The Sunseeker subsequently rebranded under Hilton’s Curio Collection.
