CAI Investments Secures $87M for Arizona Hotel
- Aug 23, 2019
CAI Investments has closed an $86.5 million construction loan for the development of its 18-story, 290-key Tempe Westin hotel in Tempe, Ariz. Construction on the full-service business hotel began in March and is slated for completion in the second quarter of 2021. Crescent Hotels & Resort Management will be the third party operator for the hotel.
The hotel will be located at 11 E. Seventh St. in downtown Tempe, just blocks from Arizona State University and multiple Fortune 500 companies, which will help drive demand. The property is walking distance to ASU’s Sun Devil Stadium and a 10-minute drive to the Los Angeles Angels spring training stadium and near other MLB spring training facilities.
It will have more than 14,000 square feet of convention space and meeting rooms along with a rooftop pool lounge, full-service restaurant, coffee shop and the brand’s signature WestinWORKOUT fitness studio. Designed by RSP Architects of Tempe, the building will have a modern look and feel featuring state-of-the-art guest rooms and corridors with custom-designed elements and artwork. It will also have five premium suites on the 17th floor.
CAI’s Las Vegas bet
The Las Vegas-based CAI Investments recently broke ground on a Delta Hotels by Marriott in its hometown. The 24-story, 284-key luxury hotel will be located just off the Las Vegas Strip at 3883 W. Flamingo Road and will be the brand’s first location in the city. It will have 10,000 square feet of meeting space and 1,600 square feet of retail space. Other guest amenities will include a rooftop pool, fitness center, covered parking, lobby dining bar and coffee bar. The full-service hotel is scheduled to open in late 2021. It is the final phase of an 8.6-acre, mixed-use development by CAI Investments that include 27,000 square feet of retail and restaurant space with tenants like Walgreens, Denny’s and Chick-Fil-A.
An entity controlled by CAI Investments acquired $15.2 million in senior debt from Calmwater Capital in January 2018 for the development of the retail portion of the project.
Hotel sector heats up
A HotStats report released earlier this year noted there was a year-to-year-increase in GOPAR – gross operating profit per available room—in the hotel sector for the third consecutive year. The report noted 2018’s growth had been higher than 2017. Tempe is part of the Phoenix market which had its strongest growth in 2018 since 2010, according to the HVS/STR Hotel Valuation Index. The outlook for 2019 was also positive with bookings at the Phoenix Convention Center expected to be higher than 2018. The HVS/STR report noted downtown Phoenix and downtown Tempe were seeing most of the new hotel construction with the majority of the projects coming in the upper-upscale, select- and full-service categories.