Two Iconic La Quinta Properties Sold for $1.5 Billion
LA QUINTA--Major news shaking up two iconic properties in the valley. La Quinta Resort And Club along with PGA West have been sold to the real estate investment arm of the Singapore government.
The properties sold along with three other out-of-town resorts for a total of $1.5 billion.
"They're great iconic properties and Singapore Bank is very excited about having them because they are iconic properties, and they have a lot of potential upside over the next few years in our industry," Managing Director of La Quinta Resort & Club and PGA West, Gary Sims, said.
A hedge fund group bought the properties about a year ago and filed for Chapter 11 bankruptcy a short time later. The Singapore government won the foreclosure bid, and the deal is expected to close by the end of the month.
"For us it's great because now we have an ownership that really loves the resort and loves the PGA complex. They plan on holding on to the asset for several years, so it's exciting for us to have that ownership behind us," Sims said.
The La Quinta Resort And Club will continue to be managed by Hilton and keep the Waldorf Astoria brand. Operations at PGA West will stay the same. A new owner could mean even more money for both properties.
"We've talked about a lot of things from a capital stand point from improving some of the areas of the hotel like renovating our guest rooms to doing additional capital items in our club houses at PGA West and our golf courses, so it's very exciting to have that kind of money behind us now," Sims said.
Sims says there won't be any staffing cuts. The only changes he says could be coming to these valley landmarks are possible expansion, renovation and extra cash.
The three other properties included in the sale are The Arizona Biltmore in Phoenix, The Grand Wailea Resort Hotel & Spa in Hawaii, and The Claremont Hotel Club & Spa in Berkeley.