Case Study 1
Phoenix Airport Days Inn
In November of 2003, VRE purchased the Phoenix Airport Days Inn in Phoenix, AZ from a lender. The 7 acre property included 300 hotel rooms, restaurant/lounge, and 10,000 sq ft of meeting space. The previous owner borrowed against the hotel prior to 9/11 and was unable to make payments when the hospitality industry suffered post 9/11. The lender foreclosed on the property and VRE was able to purchase the hotel at a significant discount. VRE kept the General Manager and gave him the option to become a partner in the deal. As a partner the GM continued to manage and operate the hotel. Additionally, capital improvements were made to the property to mitigate neglected maintenance. Between 2004 and 2006 the hotel industry began to bounce back and the Days Inn began to show positive growth in revenue. In June of 2007 the hotel was sold.