Phoenix council to weigh $300 million offer for struggling hotel
Feb 2, 2016, 1:43 PM
PHOENIX — A downtown Phoenix hotel could be in the hands a of new owner in the near future.
The city council will vote Wednesday whether to accept a multimillion dollar offer for the Sheraton Grand Phoenix.
TLG Phoenix, an affiliate of Maryland-based Thayer Lodging Group, made a $300 million cash offer to buy the city-owned hotel.
A request to add the authorization to sell to the meeting agenda was issued Jan. 28, according to public documents.
The city has fallen into a hole with the 1,000-room hotel near Third and Van Buren streets and has been actively searching for a buyer since December. Estimates were the hotel has lost nearly $30 million.
Selling off the building would help city coffers.
In December, Mayor Greg Stanton told the Arizona Republic the hotel’s sale “will be a positive thing for the sports-arena fund and put the city of Phoenix in a stronger financial footing for other projects, including the possibility of a new downtown arena.”
The Sheraton, the biggest hotel in the state, opened in 2008 during the recession. A name change in November from the Sheraton Phoenix Downtown Hotel hasn’t had an impact.
The city council approved the purchase in 2003 and owes around $306 million.
The Associated Press contributed to this report.
