An investors group led by the majority owner of the Phoenix Suns has taken over a Tucson resort and plans to start a complete renovation in coming months.
Southwest Value Partners - a San Diego-based real estate company co-founded by Suns owner Robert Sarver - this week acquired the companies that own the Westin La Paloma Resort & Spa and another Westin property in South Carolina.
Sarver's company now plans to invest more than $60 million to renovate the properties and bring them up to the standards of the upscale Westin brand, said Mark Schlossberg, a general manager of Southwest Value Partners.
The company is still finishing the design. Upgrades at the Westin La Paloma should start once its business starts to slow down during the summer, Schlossberg said.
Schlossberg anticipates the $60 million will be divided fairly evenly between the two resorts.
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Built in 1986, the Westin La Paloma, 3800 E. Sunrise Drive, hasn't undergone a complete renovation since then, said Jonathan Litvack, the property's general manager.
"Everything, to a large degree, could use some updating to a modern look," Litvack said.
The resort's exterior won't change much, but the inside will be completely redone with a more contemporary, unified look, Litvack said.
The upgrades will include:
• Renovation of all the rooms.
• New furniture in the lobby.
• New carpet, new chandeliers and new wall coverings in the meeting space.
• In the pool area, the slide, lounge chairs and umbrellas will be replaced; the deck will be resurfaced; and new lights installed.
• The fitness center will be completely redone.
Southwest Value Partners took over the resorts as part of the Chapter 11 bankruptcy reorganization of the resort's former owners (see related story).
Litvack said resort staffers are excited about the new partnership and the money that comes with it. The resort's ability to attract corporate group bookings has taken a hit during the bankruptcy process, court documents show.
But with new ownership, "our client mix will shift, our corporate customers will come back," Litvack said.
Competition among high-end resorts across the country has grown increasingly fierce in recent years, and the Westin La Paloma needs those upgrades to keep pace, its owners say.
Whether that means customers will have to pay more to stay there, Schlossberg said that will largely be dictated by the market. But polishing the resort's image will allow it to charge a premium rate, he said.
"Obviously, nicer properties can justify higher rates," Schlossberg said.
THE NEW OWNERS
Based in San Diego, Southwest Value Partners was founded in 1990 by Suns owner Robert Sarver and his business partner Mark Schlossberg.
The company's investments have included multifamily properties, residential land and office towers. In 2004 and 2005, believing the market had overheated, the company sold much of its assets, Schlossberg said. Those assets included multifamily properties in Tucson.
The company began actively investing again in 2008, Schlossberg said.
In the early 1990s, Southwest Value Partners acquired about 1,000 acres of residential land and 520 acres of commercial land in Marana's Continental Ranch, Schlossberg said. It has sold most of that land over the years, but it still holds about 70 acres of commercial property near North Cortaro Road and Interstate 10.
Contact reporter Dale Quinn at dquinn@azstarnet.com or 573-4197.