$7 Million Renovation Planned for the Hotel
PHILADELPHIA, PA – March 9, 2015 – Arden Group, through their discretionary fund affiliate Arden Real Estate Partners II, LP, announced today that they acquired the Hilton Santa Cruz Scotts Valley, CA. The 174 room upscale hotel includes over 7,900 square feet of indoor outdoor function and meeting space. Hilton full service amenities feature an outdoor swimming pool and whirlpool, spacious courtyards, fitness center, three meal restaurant, lobby lounge and business center.
Arden will be investing an additional $7 million in the hotel to renovate the guest rooms, public space and upgrades to the restaurant. The sale was facilitated by Jones Lange LaSalle.
The property is located in the city of Scotts Valley – just five miles north of Santa Cruz and 20 miles south of Silicon Valley. Minutes from the University of California, the hotel benefits from year-round demand from both corporate and leisure travelers. Santa Cruz has long been one of California’s most popular tourist destinations with its acclaimed boardwalk boasting three million visitors annually.
Commenting on the investment, Craig A. Spencer, CEO of Arden Group said, “We are pleased to have acquired this quality full-service hotel in this robust California coastal market. We are able to provide a solid financial platform for the property, as well as the necessary funding for renovations that will position the property with the premier hotels in Santa Cruz County. 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.”
Arden Group closed on the 323 room Intercontinental Tampa hotel in Florida in January 2015.
Arden Group VP of Acquisitions, René Bardel, said, “This is a special acquisition for Arden Group being the only full-service branded hotel in this great coastal market. We have enjoyed learning about the dynamic boardwalk and its impact on the local hotel community, and look to be good community partners in the continued marketing of the many great festivals and events surrounding the boardwalk.”
HEI Hotels & Resorts has been selected to manage the hotel along with Arden’s asset management team.
“HEI is excited to have the opportunity to work again with the Arden Group with this outstanding asset. Arden’s commitment to quality assets in top markets is consistent with the strategies and expertise of our organization,” stated Ted Darnall, HEI Principal and COO. “We could not be more pleased to be part of a great project in a very dynamic and high barriers to entry market.”
“Arden Group values our relationship with HEI, and awarded them management as they have achieved superior results for us in past investments,” Bardel.
