WESTIN PHOENIX DOWNTOWN | PHOENIX, AZ

KEY STATS

  • Gross SF / Keys : 270,165 / 242
  • Property Type : Hotel
  • Status : Operating

DESCRIPTION 
The 242-room, full-service, Westin Downtown Phoenix hotel is located strategically in the central business district of Phoenix. The hotel, with a signature restaurant, now occupies the lower half of a 26-story tower.

HISTORY
In 2006, NEBF partnered with a local landowner and a Chicago-based developer to design and build a mixed-use project consisting of Class A office space, residential condos, and classroom space for Arizona State University. Highly-inflationary construction costs and deteriorating market conditions during the economic downturn in 2008 required a project reconfiguration into a Class A office tower with structured parking.

DEVELOPMENT 
With the project nearing base-building completion in late 2009 and more than half the building uncommitted for office leases, National (then NEBF’s in-house real estate group) took the initiative to identify solutions which would preserve NEBF’s investment value in the project, given the challenging market conditions at the time. The investment team conceived a plan to convert the available portion of the building into a business-class hotel, seizing an opportunity in what was an underserved local submarket and based on experience with hotel properties. The team pursued all pre-development activities necessary to implement the plan, including financial feasibility, concept pricing, hotel market assessment, and identification of a hotel operator. The project’s lending syndicate and local government supported the plan, respectively approving a loan modification and tax incentives.

STRATEGY
NEBF retained ownership of the project and the National team assumed all development responsibilities. These tasks included architect selection and supervision, general contractor selection and contract negotiation, construction oversight, hotel operator coordination, and change order coordination. National managed a complicated, fast-paced development project with a total budget of more than $40 million, including a $26 million construction contract. From reimagined concept to delivery, the project took approximately 20 months to complete.

STATUS 
The Westin Downtown Phoenix is now among the premier hotel properties in the Phoenix market, with outstanding guest scores and reviews, and has been recognized as one of the top ten Urban Business Hotels in the entire Starwood Chain.