Sheraton Phoenix Downtown Hotel to be Sold in Light of Financial Trouble
After careful consideration, the city of Phoenix is in talks of selling the Sheraton Phoenix Downtown Hotel in favor of a new downtown arena for the Phoenix Suns. The hotel has seen an extreme loss of approximately $38 million since opening in 2008, and the future of the its performance does not look promising.
According to Tim Gallen from the Phoenix Business Journal, the city owes about $330 million on the Sheraton, but estimates suggest its value only ranges between $175 million to $225 million. Apparently, the city has been covering losses with money from a sports-facilities fund created to build US Airways Center years ago.
Despite the 40-year contract between the Phoenix Suns and US Airways Center, the team can opt out as early as 2022 depending on if they deem the facility obsolete. With this proposed transaction, money will be freed up in order to acquire a new and more updated arena for the team.
For more information, click here to read more from the Phoenix Business Journal.