Case Study
Arizona Biltmore
Phoenix, Arizona
The Opportunity
- Classic Hotels & Resorts purchases 70 year old Frank Lloyd Wright-inspired 730-room resort in 1992 and undertakes a $60 million renovation, including the addition of 122 units and 80 Villas
- Classic Hotels & Resorts re-launches Arizona Biltmore in 1994
- Improvements garner national media attention:
- New York Times, Architectural Digest and Travel & Leisure Magazine
- Urban Land Institute Heritage Award for Excellence
- Classic Hotels & Resorts sells Arizona Biltmore for $350 million in 2000
- During the period in which Classic Hotels & Resorts owned and operated the hotel, revenue increased 77% and EBITDA improved from a negative $4 million annually to $28 million annually
The Investment
Acquisition Closed: June 1992
Acquisition Price: $62 million ($85,000/key)
Re-development Cost: $60 million ($82,000/key)
Sale Closed: March 2000
Sale Price: $350 million
