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The Opportunity
Berkadia Real Estate Advisors LLC is pleased to offer, on an exclusive basis, the opportunity to acquire the fee-simple interest in the Sedona Reál Inn and Suites (the “Inn”, “Hotel”, or “Property”). Nestled along State Route 89A, Sedona’s main artery, the 89-key Inn is surrounded by Sedona’s famed outdoor experiences including Red Rock State Park, Crescent Moon Ranch with its iconic Cathedral Rock, and Boynton Canyon. The Property offers spacious guestrooms and living spaces and uniquely benefits from suite product that comprises more than half of the guestroom inventory. The Inn also offers a number of upscale amenities including a private one-acre park for guests with a fire pit and barbeque area with views of Thunder Mountain, outdoor pool with a hot tub, and complimentary breakfast.
Surrounded by majestic red rock scenery and evergreen vegetation, Sedona is an outdoor enthusiast’s dream. Four million visitors descend annually to experience Sedona's world-class attractions, including more than 200 trails for biking, hiking, and rock-climbing, fine dining, art galleries, wine country and personal enrichment. Whether guests are searching for gorgeous natural landscapes, a base to explore the rest of Northern Arizona, or a lively insight into the New Age experience, Sedona offers experiences for everyone.
The offering represents an exceptionally rare opportunity to acquire a quality hotel with significant upside in the highly sought after Sedona market, one of the Western Region's most celebrated leisure destinations and one of the country's highest-barriers-to-entry markets. This one-of-a-kind offering presents a new investor the chance to reposition a strong cashflowing Hotel through numerous value-add enhancements, including pursuing brand and management alternatives, targeted guestroom and public spaces upgrades, and potential redevelopment of nearly one acre of excess land.
PROPERTY Details
Fee-Simple / Non-Union
89 guestrooms including 47 suites
95 on-site spaces (90 regular and 5 ADA spaces) /
5 leased adjacent spaces
3.34 acres
Independent / Unencumbered
95 Arroyo Pinon Drive | Sedona, Arizona 86336
Tenure / Labor
Guestrooms
Opened / Renovated
Franchise / Management
Parking
Land Acerage
42,484 SF / 8 guestroom buildings
Building Area/Configuration
Complimentary Breakfast Buffet
Food & Beverage
0.87 acres of unentitled/developable land (zoned residential)
Developable Land
WORLD-CLASS LEISURE DESTINATION
Sedona, the crown jewel of the Verde Valley, is consistently ranked among the nation’s most treasured destinations. The town is nestled in the desert and surrounded by stunning red rock formations. Centrally located within Northern Arizona, Sedona serves as a perfect home base for visitors seeking adventure at Grand Canyon National Park, Jerome (America’s largest Ghost Town) and the vibrant university town of Flagstaff. Annually, four million visitors descend to the area to experience region's diverse world-class amenities, from hiking and outdoor activities among the valley's signature red rock landscape to spirituality-boosting energy vortexes. Nature lovers and hikers from all over the world use Sedona as their base for exploring the stunning landscapes Northern Arizona has to offer. More recently, with its nearby vineyards and tasting rooms, Sedona has emerged as a destination for wine enthusiasts. Whether guests are searching for gorgeous natural landscapes, a base to explore the rest of Northern Arizona, or a lively insight into the new age experience, Sedona offers experiences for everyone.
Sedona by the Numbers
Hours north of Phoenix
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Sedona Overview
Sedona is a charming and unique city of 10,400 residents located in one of the most breathtaking areas in the Southwest United States. The city is situated in the Mogollon Rim, or simply “rim area,” of Arizona, a picturesque geologic transition between the desert of southern Arizona and the mountains of northern Arizona.
Sedona is located 45 minutes south of Flagstaff and less than two hours north of Phoenix. A vast array of activities and destinations are in and around Sedona, and the city is an ideal launching point for desert outings to the south or a short drive north to the Grand Canyon.
Each year, approximately 4 million people visit the area. Sedona is blessed by four seasons, all of which lack the weather extremes common at many other popular tourist areas. Residents enjoy an average of 278 sunny days per year, while sub-freezing and 100°-plus temperatures are infrequent. The exceptional weather and beautiful scenery together make it a must-see destination for visitors of all ages.
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INVESTMENT HIGHLIGHTS
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I N V E S T M E N T S U M M A R Y
Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada.
© 2023 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. For state licensing details for the above entities, visit: https://www.berkadia.com/licensing/.
Scott Hall
Managing Director
858.257.4724
scott.hall@berkadia.com
Courtney Farrington
Senior Financial Analyst
619.497.3083
courtney.farrington@berkadia.com
Aaron Lapping
Senior Director
858.257.4725
aaron.lapping@berkadia.com
Mark Forrester
Broker of Record
AZ Lic. #LC649418000
Spencer Scott
Senior Director
602.522.5204
spencer.scott@berkadia.com
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Transaction Team
STRATEGIC WEST SEDONA LOCATION
Located in the charming West Sedona neighborhood, the Hotel enjoys a stunning backdrop that includes the iconic Thunder Mountain. West Sedona is teeming with top hiking, mountain biking and ATV trails that reveal Instagram friendly photo ops. Lizard Head trail, The Subway Cave, Chimney Rock and West Fork Oak Creek Trailhead are some of the favorites. West Sedona is also home to many of the area’s restaurants, art galleries, boutiques, and services. The Inn is strategically located to serve as the ideal base camp to experience the region and gear up for further adventure.
HIGH-BARRIERS-TO-ENTRY MARKET WITH DEVELOPMENT OPPORTUNITY
Because of Sedona’s Planning and Zoning Commission, new development opportunities are essentially non-existent in the area. Most available land in and around Sedona is protected or has already been developed. These strict limitations on new development prevent new competitive supply, fortifying the Hotel’s market positioning well into the future. Included within the offering is approximately 0.87 acres of undeveloped, zoned residential land (currently utilized as a park amenity for guests) that presents meaningful future business plan optionality.
UNENCUMBERED OF HOTEL BRAND & MANAGEMENT
A new owner will have the opportunity to explore alternative brand options to widen distribution and improve margins. An independent strategy could also continue to maximize cost controls while preserving optimal operational flexibility. New ownership may implement their own management, strategic direction, and revenue and cost control initiatives.
VALUE ENHANCEMENT OPPORTUNITIES
Complete a targeted guestroom and public spaces renovation in order to drive rate and occupancy
Increase resort fee following expansion of amenity base which could include beer/wine wall, guest happy hours and other communal interactions
Independent nature presents optimal flexibility to assess distribution strategies, revenue management optimization and brand alternatives to further position the Hotel
Develop a cutting edge spa facility to compete with other full-service boutique properties in Sedona
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Hours south of the Grand Canyon
Million visitors annually
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Local Tour Operators & Attractions
60+
Artists and 80 unique shops & galleries
500+
Elevation
(1,400 M)
4,500 ft
The International Dark Sky Association has recognized Sedona as one of just 26 Dark Sky Communities in the Unites States. This designation speaks to the location’s world-class star gazing and includes development and lighting regulations that preserve this unique attribute.
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1996 / 2006
• Outdoor Pool & Hot Tub
• Fire Pit Area
• Large Propane Grills
• Fenced Pet-Friendly Park
• Bike Repair & Wash Station
• Fitness Center
• Pet-Friendly Rooms
Amenities
LOCATION
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