Maryland Company Offers To Buy Phoenix-Owned Sheraton Hotel
Thayer Lodging is offering $300 million in cash for the Sheraton Grand Phoenix near Second Street and Van Buren Avenue.
According to a city report, Thayer Lodging, referred to as TLG Phoenix in public documents, would also get $10 million from the hotel's capital replacement fund. Phoenix would lease the ground to TLG for $1 a year for 99 years.
Staff estimates that completing the deal and closing out the city's financial obligations will cost Phoenix $3.2 million. Phoenix has lost more than $28 million since the hotel opened in 2008. At that time, supporters said the hotel was needed to address a shortage of rooms following the Convention Center expansion.
According to Thayer's website, it has a portfolio of 13 hotels.The city council is scheduled to vote Wednesday. If approved, the contracts would be executed by Feb. 29, 2016.