Reposted from GlobeSt. Author: Kelsi Maree Borland
The hotel firm acquires its first hotel in the Phoenix market, The Wyndham Garden Phoenix Midtown, as has targeted the market for expansion.
Oxygen Hospitality has expanded into the Phoenix market with the acquisition of The Wyndham Garden Phoenix Midtown. The hotel is a 6-story, 160-room property on Central Avenue and Osborn Road in Downtown Phoenix, and traded hands for an undisclosed price. Oxygen Hospitality has targeted Phoenix because of its recent economic growth, leisure and business tourism and sunny year-round weather. In addition, Phoenix is the home of Oxygen’s headquarters.
“We evaluate a hotel’s location and assess the area’s tourism, business and population growth projections,” Yaron Ashkenazi, CEO of Oxygen Hospitality, tells GlobeSt.com. “Many existing hotels, like this one we purchased, are located in excellent areas that are in the midst of being revitalized and require some time, attention and investment to elevate the property to meet expectations of today’s global traveler. We look for asset turnarounds that are underpriced/ undermanaged, mid- to upper-scale independent & branded hotels with approximately 100 to 500 room keys. Once we redevelop, reposition and instill our creative approach to hotel operations and management, these hotels can achieve profitability gains and capital appreciation.”
Downtown Phoenix fit the firm’s profile perfectly. The market is undergoing a revitalization and has strong population growth and a healthy construction pipeline. “The area of Phoenix surrounding the hotel’s midtown Phoenix location is undergoing tremendous economic development and revitalization with new housing and business redevelopment, notably Park Central Mall two blocks away,” says Ashkenazi. “In addition to Phoenix exhibiting robust business and leisure tourism, there’s also a large hub of medical sciences and health care services with St. Joseph’s Hospital and Medical Center, Dignity Health and the recent announcement of the new Creighton University Medical School planned nearby.” The Wyndham Garden Phoenix Midtown property, specifically, is proximate to public transit as well as the Phoenix Convention Center.
Oxygen has a buy-it, revive-it, manage-it strategy, and it will execute a similar business plan on the Phoenix asset. “We are in the process of finalizing plans for a multi-million-dollar renovation that will elevate the property from a select service to full service hotel,” says Ashkenazi. “Property improvements include guest rooms, restaurant/bar, meeting spaces, parking structure, etc. Being attentive to the needs and delivering memorable experiences to our global guests will help to elevate this hotel and prompt loyalty.”
While this is Oxygen’s first Phoenix hotel, it is continuing to look for opportunities in the market. “We continue to review and evaluate opportunistic acquisitions in Phoenix and other advantageous locations that fulfill our business model,” says Ashkenazi. “We are open to other attractive cities within states in the U.S. Sunbelt including California and Nevada.”
Read the story from Globe Street here.