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Luxury Hotel in Phoenix Sells for $705 Million
Luxury Hotel in Phoenix Sells for $705 Million

Blackstone Inc. and Henderson Park have reached an agreement to sell Phoenix's Arizona Biltmore hotel for a record $705 million. This comes almost six years after Blackstone acquired the property for $400 million from Singaporean sovereign wealth fund GIC, and invested over $150 million in renovations. Despite the pandemic, hotels have outperformed other commercial real estate categories, leading to a surge in demand for luxury resorts.

Hotel owners have been looking to capitalize on the current market conditions, with Gencom purchasing the majority of the Ritz-Carlton Key Biscayne from Brookfield Asset Management Ltd, and Hyatt Hotels Corp. considering selling the Park Hyatt Zurich to Trinity Investments. The post-pandemic surge in domestic leisure travel has subsided, but luxury resort owners continue to profit from foreign demand, causing a spike in stock value for American lodging companies.

While Henderson Park and Blackstone declined to comment on the sale of the Arizona Biltmore hotel, the transaction signifies a lucrative deal in the current real estate market. The industry's focus on high-end properties is evident, as owners seek to take advantage of the strong performance of luxury hotels amid the ongoing recovery from the pandemic.