SANTA CRUZ SCOTTS VALLEY, CA—Arden Group, through its discretionary fund affiliate Arden Real Estate Partners II, LP, acquired the Hilton Santa Cruz Scotts Valley here.
The 174-room upscale hotel includes more than 7,900 sq. ft. of indoor/outdoor function and meeting space, an outdoor swimming pool and whirlpool, courtyards, fitness center, restaurant, lobby lounge and business center.
Arden indicated it will invest an additional $7 million in the hotel to renovate the guestrooms, public space and upgrade the restaurant.
Commenting on the investment, Craig A. Spencer, CEO of Arden Group, stated, “This acquisition is consistent with our strategy of investing in opportunities for value creation, making this our sixth hotel purchase in the past two years. The planned renovation and Arden’s strategic asset-management oversight will allow us to achieve our operational goals as well as enhance appreciation of the asset over time.”
The sale was facilitated by Jones Lange LaSalle.