Thursday, June 13News That Matters

Henderson Park Acquires Iconic Arizona Biltmore From Blackstone Real Estate for $705 Million

Phoenix & New York – May 20, 2024 – Henderson Park, the international private equity real estate firm, announced today that it has completed the acquisition of the Arizona Biltmore resort in Phoenix, Arizona, from Blackstone Real Estate for $705 million.

The iconic 705-key, luxury, full-service hotel has recently undergone a substantial renovation with broad appeal to premier leisure, corporate and group guests, underpinned by growing demand in the submarket.

Originally opened in 1929, set on 39 acres of land and located in the heart of Phoenix a mere 15 minutes from Sky Harbor International Airport, the “Jewel of the Desert” resort boasts an impressive amenity offering including over 200,000 sq ft of meeting space; seven swimming pools; multiple food and beverage outlets; and a state-of-the-art 28,000 sq ft spa.

Pyramid Global Hospitality, a leading hotel management company, with whom Henderson Park previously acquired the La Quinta Resort in Palm Springs in 2021, will act as the firm’s hotel manager for the Arizona Biltmore.

Morgan Stanley as lead, together with Deutsche Bank and J.P. Morgan, provided a $460 million commercial mortgage loan to finance the acquisition. The resort purchase was completed through funds managed by Henderson Park, including a commitment from Cincinnati-based Western & Southern Financial Group, Inc. and its real estate arm, Eagle Realty.

Nick Weber, CEO and Founder of Henderson Park, commented: “This transaction presents a rare and compelling opportunity to acquire a historic but newly refurbished hotel in one of the country’s premier hospitality markets and to both immediately capitalize on accelerated performance and to further enhance the resort’s offering into the future.

“We take the stewardship of the Arizona Biltmore very seriously and will work with our partners to position this iconic hotel for continued success. In Hilton we have a longstanding relationship across our global hospitality portfolio and this, in collaboration with our repeat operating and lending partners, supports our conviction in the opportunity ahead for a special investment.”

Rob Harper, Head of Blackstone Real Estate Asset Management Americas, said: “As owners of the Arizona Biltmore, we brought our hospitality expertise and experience to enrich and preserve this historic property. We’re pleased to reach this agreement on behalf of our investors and position the asset for long-term success.”

Henderson Park was advised by Jones Day.
Eastdil Secured served as Blackstone’s financial advisor and Simpson Thacher & Bartlett LLP served as Blackstone’s legal counsel.