SCOTTSDALE, AZ—Caliber Hospitality, a division of Caliber-The Wealth Development Company, acquired the 232-guestroom, Hilton Tucson East in Tucson, AZ, for $9.27 million. It is located in Tucson’s business district and features 12,000 sq. ft. of meeting and convention space, a pool and upgraded dining facilities.
Purchased with private investor equity, in partnership with the Caliber Distressed Real Estate Income Fund (CDIF, LLC), Caliber plans an $8-million property renovation. The Hilton Tucson East purchase expands Caliber’s lodging investment portfolio to six hotel properties in both Arizona and Alaska, and includes Crowne Plaza, Hampton Inn & Suites and Holiday Inn & Suites. As with all of Caliber’s hospitality holdings, HMC Hospitality will manage the hotel’s day-to-day operations.
Chris Loeffler, CEO and co-founder of Caliber-The Wealth Development Company said, “The Hilton Tucson East is the proverbial ‘diamond in the rough’ that with the proper renovation plan and managerial expertise, will be transformed into one of the finest hotels in Caliber’s portfolio.” He added, “The property will provide significant investor value creation as it was purchased approximately 70% below estimated replacement cost. Due to its solid market fundamentals, we’ve wanted to expand within Tucson beyond our current single-family and multi-family residential portfolio. This hotel is an excellent opportunity to do just that.”
The hotel is located between Downtown Tucson and Saguaro National Park and is along one of Tucson’s main east-west thoroughfares, Broadway Boulevard. “We’re thrilled to partner with Caliber, and excited to revitalize and restore this property to its original beauty,” said Frank Heavlin, president of HMC Hospitality. “We’ve set into motion our personnel and property plans in order to elevate services and provide an exceptional experience for our guests. This hotel will become a diamond in the Caliber /HMC hotel portfolio.”