Phoenix-based
Pivotal Group paid $39.5 million for the nearly 50-year-old resort and plans
extensive renovations and improvements to the asset.
PHOENIX —
Phoenix-based Pivotal Group is investing $100 million to purchase and renovate
the 432-key Hilton Phoenix Resort at the Peak, according to a report in the
Phoenix Business Journal.
According to
the story, Peak Hotel LLC, which is linked to Pivotal Group, paid $39.5 million
for the property on October 1, according to the real estate database Vizzda
LLC. Pivotal acquired the property from New York City-based Fortress Investment
Group, which purchased the property for $51.35 million in 2019.
Pivotal Group’s founder and CEO is Francis Najafi, who is also a part-owner of the NBA’s Phoenix Suns. Pivotal has previously owned other hospitality assets, including the Ritz-Carlton Phoenix and several other real estate assets around the U.S.
The property
was initially developed in 1977 by Gosnell Development Corp. and named The
Pointe at Squaw Peak. It was rebranded to a Hilton and was managed by the
company starting in 1991. Hilton eventually purchased the property in 1999 for
$94 million. Tyson, Virginia-based
Park Hotels & Resorts bought the property in 2000 before selling it to
Fortress.
Pivotal
Group will maintain the property name and renovate it, Julia Najafi, principal
and vice president of real estate for Pivotal Group, told the Phoenix Business
Journal. Plans call for building a spa, fitness center and a new adult pool,
which will add to the existing family pool and lazy river. There will also be a
renovation of all the guest rooms starting next summer.
“It needs
some repositioning and renovation,” she told the PBJ. “It can really transform
and be something really exciting.”