866 267 1321
Case Studies
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
La Playa Carmel
Carmel by the Sea, California
The Opportunity
Classic Hotels & Resorts purchases the 106 year old 75-room La Playa Hotel in late 2011 and undertakes a $3.5 million restoration project to refurbish all guest rooms, suites and public space.
Closed during the extensive renovation, the hotel re-opens as La Playa Carmel in July of 2012.
The restoration garners national media attention:
- “The new owners took a straightforward approach that puts tradition ahead of bling; they didn’t try to fix what wasn’t broken.” – San Francisco Chronicle
- “Do stay at the 75-room La Playa Carmel to see how a 2012 renovation has changed a century-old community favorite.” – The Los Angeles Times
- Within the first 12 months of operation the hotel achieves a $3 million turnaround in profitability, and garners the highest room revenues in the property’s history.
The Investment
Acquisition Closed: November 2011
Acquisition Price: $18 million ($240,000/key)
Restoration Cost: $3.5 million ($47,000/key)
