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Published:   June 27, 2014
Volume:   XX    Number:   25

FLORIDA TIMESHARE COMPANY PAYS $52 MILLION FOR ZONA HOTEL & SUITES IN SCOTTSDALE

Scottsdale – A company formed by timeshare operator Orange Lake Resorts in Kissimmee, Fla. (Spence Wilson, chairman) paid $52 million ($120,650 per room) to buy the 431-room Zona Hotel & Suites in Scottsdale. The 27-year old hotel, which is adjacent to the Fairmont Scottsdale Princess resort, is located at 7677 E. Princess Boulevard. The new owner, which operates the popular Holiday Inn Club Vacations brand, is expected to convert the hotel to a timeshare. Orange Lake Resorts will spend $25 million to $30 million to refurbish the property in a renovation that will close the resort for 18 months starting August 1. The remodeled hotel is expected to include a significant reduction in the total number of rooms. Maricopa County records show OLCC Arizona LLC (Orange Lake entity) paid cash to acquire Zona Hotel & Suites. The seller was Resort Suites Scottsdale 2011 L.P., a partnership formed by Sunstone Realty Advisors in Vancouver, British Columbia, Canada (Steve Evans, principal). The sale was negotiated by Van Robinson and Don Heinonen of Heinonen Associates LLC in Scottsdale. The 12-acre resort is comprised of one- and two-bedroom suites. The hospitality property has always catered to golf enthusiasts with its proximity just north of the TPC Scottsdale, a 36-hole championship golf layout that is home to the annual Waste Management Phoenix Open golf tournament. In February 2011, BREW reported the company formed by Sunstone Realty Advisors paying $34 million ($78,887 per room) to acquire the hotel, which was then called Xona Resort Suites. Sunstone Realty hired O'Neill Hotels & Resorts Ltd. to manage the property and changed the name to Zona Hotel & Suites. BREW has now reported the hotel selling three times. In November 2005, BREW reported an affiliate of Goldman Sachs & Co. and Trinity Hotel Investors LLC of New York City, N.Y. paying $77 million to purchase the property, at that time called Resort Suites. The lender foreclosed on the hospitality asset after the Goldman, Sachs/Trinity venture defaulted on a $95 million loan that was secured by the resort. While some may describe the property as a bit tired and outdated, it sets up well for use as a timeshare/vacation rental. The units have fully furnished kitchens and can be configured to have three and four bedrooms. There is also significant appeal because of its location in north Scottsdale being close to many golf, dining and shopping options and the amenities available next door at the AAA Five-Diamond Fairmont Scottsdale Princess resort. The Scottsdale location is the first in Arizona for Orange Lake Resorts, which has 12 Holiday Inn Club Vacations in eight states. That company is one of the largest timeshare businesses in the U.S. with almost 4,000 units and 80,000 members. Holiday Inn Club Vacations was created through an alliance between Orange Lake Resorts and InterContinental Hotels Group (IHG). With more than 4,500 hotels and 650,000 guest rooms in 100 + countries, IHG is the world’s largest hotel group. Orange Lake Resorts was started in 1982 by Kemmons Wilson, the founder of the Holiday Inn hotels. The network of Orange Lake Resorts is operated by Orange Lake Country Club Inc. The entity that acquired Zona Hotel & Suites (OLCC Arizona LLC) was formed by Wilson Resort Group LLC. That company is owned by the Wilson family. Don Harrill is CEO of Wilson Resort Group and holds the same title at Orange Lake Resorts. Get more from Harrill at (407) 239-000. Reach Evans at (604) 681-5959. Talk to Robinson at (602) 339-1130. Don Heinonen is at (602) 469-0007.





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