Phoenix Mesa
Hodges Ward Elliott (“HWE”) is pleased to offer the opportunity to acquire the 266-room DoubleTree Phoenix Mesa (“Property” or “Hotel”), strategically positioned in the heart of Phoenix’s rapidly growing East Valley submarket. The Property benefits from a diverse, resilient, and dense economic base of demand generators in the defense, technology, healthcare, and higher-education industries. The Hotel is a well-performing asset with impressive and stable cash flow, while also having upside to grow incremental revenue via scheduled renovations/PIP upgrades. The fee simple offering presents a compelling opportunity to acquire an institutional-quality hotel in one of the Sun Belt’s most dynamic and high-growth metropolitan areas.
| Address: | |
| Built: | 1985 |
| Last Renovation: | PIP completed in 2021/2022 (± $2M) |
| Keys: | 266 |
| Stories: | Eight |
| Meeting Space: | 23,077 SF |
| Parking: | ~500 Spaces |
| F&B: |
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| Amenities: |
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| Fee Simple | |
| Management: | Unencumbered |
INVESTMENT HIGHLIGHTS
PREMIER SUN BELT LOCATION
The Phoenix MSA is one of the Sun Belt’s leading metropolitan areas. The Sun Belt currently accounts for approximately 50% of the U.S. population and is projected to reach roughly 55% by 2040, having captured nearly 80% of total U.S. population growth over the past decade, or more than 12 million new residents. Phoenix has been a primary driver of this momentum, adding approximately 698,000 residents over the same period, representing a 15.8% increase for the Phoenix MSA. The technology sector has been a key catalyst of this growth, adding more than 12,000 jobs, contributing roughly $38 billion to the local economy, and attracting over $100 billion in planned investment, earning the region the nickname “Silicon Desert.”
CENTRAL POSITIONING WITHIN PHOENIX’S EAST VALLEY
The DoubleTree Phoenix Mesa is situated in a premier central Mesa location in the heart of the East Valley, near major state highways US-60 and Loop 101, offering guests exceptional access to the rapidly expanding Phoenix metropolitan region with short drives to downtown Gilbert, Chandler, Scottsdale, and Tempe. The nearby Mesa Convention Center and Amphitheatre (recognized as the largest event venue in the East Phoenix Valley), Banner Desert Medical Center (a 629-bed hospital), Mesa Community College, and the upcoming Fiesta Mall redevelopment (poised to introduce a new 80-acre mixed-use development) are all located within a 10-minute drive of the Property. The Hotel is also proximate to Arizona State University, the largest university in the country by enrollment, and is surrounded by leisure destinations such as Sloan Park (home to the Chicago Cubs spring training facility), Golfland Sunsplash, the Phoenix Zoo, and Casino Arizona. Additional accessibility is provided by Phoenix Sky Harbor International Airport and Phoenix-Mesa Gateway Airport, both located within a 20-minute drive, expanding travel options for leisure and business guests.
SLOAN PARK
PHOENIX ZOO
ARIZONA STATE UNIVERSITY
GOLFLAND SUNSPLASH
CASINO ARIZONA
RAPIDLY GROWING TECH INDUSTRY IN MESA
Phoenix’s East Valley, and Mesa in particular, has emerged as a center for the technology industry in the region, anchored by major investments from industry leaders. The city’s Elliot Road and East Mesa tech corridors now host hyperscale data center campuses from Meta, which recently brought its Mesa facility online as part of a multi-billion-dollar regional investment, helping to power the company’s AI and cloud operations. Google has also broken ground on a large data center campus in Mesa, reinforcing the city’s role as a key hub for next-gen cloud computing and artificial intelligence infrastructure. Meanwhile, Apple maintains significant operations in the area with its own data infrastructure in Mesa being included as a part of the company’s recent $500-billion investment into AI, silicon engineering, and advanced manufacturing. Additionally, Intel has broken ground on two advanced chip fabrication plants, representing a $32 billion investment. With these two new plants, Intel has invested over $50 billion into Arizona.
INTEL CHIP PLANT
APPLE DATA CENTER
META DATA CENTER
HADRIAN FACTORY
ROBUST DEFENSE BUSINESS IN THE EAST VALLEY
Mesa’s defense business is a cornerstone of the city’s economic growth, anchored by longstanding aerospace manufacturing and new advanced defense investments. Boeing’s Apache helicopter operations have helped establish Mesa as a hub for precision defense production and recently received a $4.7 billion contract for continued work on its Apache helicopter output. Hadrian is expanding Mesa’s role in national defense with a $200-million, 270,000-square-foot manufacturing and software hub, known as Factory 3, that will support raw materials through mission-critical systems production. Nammo Defense Systems maintains its largest U.S. production facility in Mesa, where it designs and manufactures ammunition, rocket motors, and shoulder-launched systems for defense and select commercial applications.
NAMMO DEFENSE SYSTEMS
BOEING APACHE FACTORY 3
SURROUNDING ABUNDANCE OF HEALTHCARE FACILITIES
The DoubleTree is located near two major healthcare providers in the Phoenix MSA, the Banner Desert Medical Center and HonorHealth Four Peaks Medical Center. Banner Health, two miles west of the Property, is the largest private employer in Mesa, employing approximately 6,500 people system-wide across medical, administrative, and support roles, with its 629-bed flagship campus. Banner Health continues to invest in the community with a recently added women’s health tower that includes 148 new spacious rooms and provides greater access to the Level Three NICU. Less than 15 minutes from the Hotel, the 178-bed HonorHealth Four Peaks Medical Center facility provides a comprehensive range of services, including emergency care, surgical services, intensive care, medical imaging, and women’s health.
HONORHEALTH FOUR PEAKS MEDICAL CENTER
BANNER DESERT MEDICAL CENTER
STRONG, CONSISTENT IN-PLACE CASH FLOW WITH UPSIDE
The DoubleTree has established itself as a premium asset in the market and achieves a strong, consistent RevPAR (has averaged ~$115 over the past 3 years). The Property offers superior amenities/meeting space, a strategic location near key demand drivers, and strong brand recognition as a DoubleTree within the Hilton family. A new owner will benefit from these embedded competitive advantages, as well as robust in-place cash flow, but also will be able to realize significant upside upon completing the PIP renovations and driving incremental revenue/NOI.
OPTIMAL OFFERING - FEE SIMPLE, NON-UNION, UNENCUMBERED BY MANAGEMENT
The Property is offered fee simple and free and clear of existing management and financing, affording new ownership maximum optionality in the future operation and capitalization of the Hotel.