Phoenix hotel to sell for $300m

TLG Phoenix, an affiliate of Thayer Lodging Group, is in contract to purchase the Sheraton Grand Phoenix in Arizona for approximately $300 million. The seller is the City of Phoenix.

The largest hotel in Arizona, the Sheraton Grand opened in 2008, the height of the recession. The City of Phoenix has lost approximately $29 million on the propoerty, according to AZ Central, and the number could climb to about $32 million with the sale. Phoenix currently owes about $306 million on the 1,000-room hotel.

Prior to the sale agreement, the hotel was valued between $175 million and $225 million.

Under the proposed terms, Phoenix would maintain ownership of the land the hotel sits on and the city would lease the land to the hotel's new owners for $1 per year for the next 99 years.

The city owns the h