Florida-based Driftwood Capital bought the property and plans to begin a major renovation in early summer, after the peak travel season has ended. The renovation will reduce the number of rooms—combining some casitas to make the suites larger and nicer—give the pool a “whole resort atmosphere,” and completely revamp the spa and fitness area.
Florida-based Driftwood Capital bought the Scottsdale Resort at McCormick Ranch and is planning a major renovation and conversion of the resort to a Curio by Hilton, the Phoenix Business Journal reported.
Driftwood Capital bought the 16-acre resort for $113 million on February 10 from an entity of Hong Kong-based Junson Capital, according to Maricopa County records, the Business Journal reported. The acquisition was Driftwood’s largest to date.
The company has two other properties in the Valley. It was a co-developer of the Canopy by Hilton Tempe Downtown and owns the Doubletree Suites by Hilton Phoenix Airport Hotel, the Business Journal reported. The Scottsdale Resort at McCormick Ranch previously operated under the Hyatt flag.
“We’ve liked the market in general,” Carlos Rodriguez Sr., founder, chairman and CEO of Driftwood, said. “We’ve always liked Scottsdale, so when this one came up, we jumped on it.”
The company plans to commence a major renovation in early summer, after the peak travel season has ended, the Business Journal reported. The renovation will take the number of rooms down from 326 to 278 keys, as some of the casitas will be combined to make the suites larger and nicer, Rodriguez said. The renovation will also include giving the pool a “whole resort atmosphere” and completely revamping the spa and fitness area.
“The product needed a little tender love and care,” Rodriguez said. “It was dated, and a bit run down, we are going to make it feel like a true luxury resort.”
The resort was built in 1976 and includes 90,000 sq. ft. of indoor and outdoor meeting space, two pools a spa and fitness center and three food-and-beverage locations, the Business Journal reported. Rodriguez said the renovation will take about 18 months to complete. The hotel will remain open during the renovation.
“We are very enthusiastic about this acquisition,” he said. “It is a great opportunity for us to grow in the market, and with the renovations we will really make it shine, it will be a great luxury resort that Hilton will be proud to have in the system.”
Rodriguez said Driftwood brought in a new general manager for the hotel but is retaining the hotel staff, the Business Journal reported.
Like Driftwood’s other projects, the resort was purchased with the company’s funds at the beginning, and then will be opened for accredited investors to buy portions of it as an investment, the Business Journal reported. Rodriguez said Driftwood always remains a general partner and keeps controlling interest and always retains at least 10% ownership of its properties. The resort will open for accredited investors in the second quarter of 2022.
The company buys, develops, finances and manages hotels, and Rodriguez told the Business Journal the company is very interested in growing its footprint in the Phoenix market through all avenues, and is open to partnering with developers, financing for existing hoteliers or acquiring more properties.