Marriott Purchases Sheraton Grand Phoenix for $255 Million

As part of its effort to transform the Sheraton Brand, Marriott International has purchased the Sheraton Grand Phoenix and will embark on a significant renovation of the property.

Marriott purchased the 1,000-room property for $255 million, according to a statement from the company.

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“The hotel will provide a living and breathing showcase of our new vision for the Sheraton brand, underscoring our commitment to restore the brand to its leadership position,” Arne Sorenson, president and CEO of Marriott International said in a statement. “Going back to Sheraton’s roots as being the heart of the community, the renovated hotel will showcase the brand’s new focus on services and design that enable socialization, productivity and personalization, featuring collaborative venues and technology that enable unique experiences. The Sheraton Grand Phoenix will become a wonderful destination for locals and out-of-towners.”

The planned renovation will include guest rooms and public space, transforming the property into a cutting-edge model of the Sheraton brand.

Marriott’s most international brand, Sheraton joined the hotel company’s portfolio as part of the Starwood Hotels & Resorts acquisition in late 2016. Earlier this month, the Marriott announced its plans for a comprehensive Sheraton brand transformation via a pop-up model lobby in New York City for owners, franchisees and other stakeholders to experience and evaluate.

Feedback on the new vision has been overwhelmingly positive, Marriott said in a statement. The company estimates that Sheraton property owners in the U.S. have already committed more than $500 million to remodel properties to meet the new standards.

The company took a similar approach when it worked to reposition the Marriott Hotels brand five years ago, including purchasing and renovating the Charlotte Marriott City Center, which then served as a living innovation hotel that helped engage owners to experience and develop the Marriott Hotels brand, enhance guest satisfaction and improve hotel profitability.

Like the Charlotte property, Marriott International expects to sell the Sheraton Grand Phoenix, subject to a long-term management agreement.

Opened in 2008, the 33-story Sheraton Grand Phoenix and is located in the heart of Phoenix’s downtown, where more than $4 billion has been invested over the past six years in office space, retail, restaurants, educational facilities and convention space.

The hotel is also within walking distance to major sports venues and has played a role for national events that Phoenix has hosted including the Super Bowl, Final Four and large international conferences.

The hotel includes about 77,000 square feet of meeting space, a business center, a fitness center, a fourth-floor outdoor pool with a poolside bar, as well as a lobby restaurant and bar.

Renovations are expected to begin in 2019.