News Release
AMSTAR COMPLETES SALE OF REPOSITIONED CALEO RESORT & SPA TO KIMPTON
Denver-Based Real Estate Private Equity Firm Successfully Exits Hospitality Asset By Creating A Second Life For Former “Sunburst Hotel” As Upscale Resort Location
SCOTTSDALE, AZ (December 7, 2005) – Amstar Group, a real estate private equity firm based in Denver, Colorado, today reported that it completed the disposition of its Caleo Resort and Spa in Scottsdale, Ariz. to Kimpton Hotels and Restaurants Group, LLC, announced Gabe L. Finke, General Partner and CEO of Amstar Group. Kimpton Hotels and Restaurants Group, a San Francisco based owner and operator of boutique hotels, acquired the 204 room resort and spa for an undisclosed amount.
“This is a prime example of how Amstar invests in underperforming assets in prime locations to achieve significant returns for our investors,” said Finke.
When Amstar acquired the Caleo in 1995, it upgraded the property to compete with traditional hotels in Scottsdale. In 2003, in anticipation of improving market dynamics, Amstar along with Noble House Hotels & Resorts, the hotel management company and Amstar’s long-time partner, initiated a major renovation program to reposition the property as a four-star city boutique resort.
“We invested over $7 million in repositioning the property to compete with the independent boutique resort segment. This was accomplished by completely renovating the guest rooms and bathrooms, by adding a 3,500 square foot Indonesian-inspired spa and remodeling the meeting space, lobby and main entrance,” said Phil Hutchins, Vice President of Amstar Group.
“As a result of its transformation by Amstar and Noble House, Caleo Resort & Spa established itself as one of the premier resorts in the Scottsdale area. From design and facilities to service levels and staff training, Amstar and Noble House succeeded in bringing the property to its current position as a competitive market player”, said Bob Foster, president of Noble House Hotels & Resorts.
Jones Lang LaSalle Hotels advised Amstar in the transaction, while Kimpton was advised by Hotel Equity Advisors.
Amstar continues to be an active investor in all real estate classes throughout major metropolitan markets of the United States. Over the next few years, Amstar plans to place approximately $1.5 billion in leveraged equity investments. Currently, the company has more than $250 million of its own discretionary equity available for investment. In 2004 and 2005, Amstar has completed investment transactions totaling more than $1.5 Billion, having recently acquired office properties in Los Angeles, San Jose, Baltimore and Houston as well as multifamily development sites in Los Angeles and Austin, and the 500-room Hilton Hotel in Alexandria, VA.
About Amstar Group
Established in 1987, Amstar Group is one of the leading real estate private equity firms in the United States. The Denver, Colorado headquartered company has acquired and developed more than 75 properties valued at over $2 billion since its inception. Its current portfolio includes a diversified mix of commercial properties ranging from office, industrial, multifamily and hospitality. Currently, Amstar Group has approximately $400 million in equity under management. Amstar’s investment strategy focuses primarily on value-added acquisitions and development, targeting office, multi-family, industrial, hotel, and retail in all the major U.S. metropolitan markets.
For more information about Amstar Group visit the company’s website at www.amstargroup.com.
About Noble House Hotels & Resorts
Noble House Hotels & Resorts is a privately-held hotel management and development company based in Seattle, Washington. The company owns and manages 12 boutique hotels and resorts located in six states and spanning the four coastal corners of the U.S. Founded in 1980, the Noble House collection includes such renowned properties as The Adolphus in Dallas, Texas; Little Palm Island Resort & Spa in the Florida Keys and The Edgewater in Seattle, Washington. For more information or to book reservations, visit the Noble House Hotels & Resorts website at www.noblehousehotels.com.