TUCSON, Ariz.
Caliber Hospitality announced the acquisition of the 7-story, 232-guest room, Hilton Tucson East in Tucson, Ariz., for $9.27 million. Located in the Tucson Business District, the hotel includes 12,000 square feet of meeting/convention space, a resort-style pool and recently upgraded dining facilities.
Purchased with private investor equity, in partnership with the Caliber Distressed Real Estate Income Fund (CDIF, LLC), Caliber is planning to embark on 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 spans numerous brands, including Crowne Plaza, Hampton Inn & Suites, and Holiday Inn & Suites. As with all of Caliber’s hospitality holdings, HMC Hospitality will manage hotel operations.
“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,” said Chris Loeffler, CEO and co-founder of Caliber. “The property will provide significant investor value creation as it was purchased approximately 70% below estimated replacement cost.”
The Hilton Tucson East is situated on 6.36 acres between Downtown Tucson and Saguaro National Park and is along one of Tucson’s main east-west thoroughfares, Broadway Boulevard.
