Warnick + Company today announced it has been appointed asset manager of the 293-room luxury Montelucia Resort in Paradise Valley, Ariz., by the property’s lender, a bank consortia led by Eurohypo AG, one of the world’s preeminent commercial banks. Operated by InterContinental Hotels Group, the luxury resort includes a 31,000-square foot spa, four restaurants, 27,000 square feet of meeting space, and 34 for-sale residential villas serviced by the resort. It opened in the fall of 2008 at a cost of approximately $330 million.
“Effective asset management is even more critical in these troubled times,” said Richard Warnick, president of Warnick + Company. “Having worked successfully through many cyclical downturns, our team has the necessary experience and in-depth expertise to work with lenders, owners, and operators to optimize their return on investment.
“Germany-based Eurohypo has been one of the most active lenders in high-end real estate, including hotels. Our role will be to help stabilize the Montelucia and help position it as one of the preeminent resorts in the highly competitive Phoenix/Scottsdale market. We also will oversee the sale of the unsold villa units, and work with Eurohypo on the ultimate disposition of the resort through Eastdil Secured, its investment sale broker.
Warnick + Company currently asset manages over 20 hotels and resorts in the U.S. (including Hawaii), Japan, and South Korea, including such properties as the 350-room Hyatt Regency Tamaya Resort & Spa near Santa Fe, N. Mex., the 1,000-room Sheraton Phoenix in Phoenix, Ariz., and the 800-room Hilton Austin in Austin, Texas. “Based on current market conditions, we expect to double our asset management portfolio in the next three years,” Warnick added. “We have more than 350 years of combined industry experience to assist lenders and owners, as well as real-world, hands-on experience and a perspective honed through every economic cycle dating back to the early 1970s.
“The next few years will be difficult, but there are solutions available,” Warnick noted. “We’ve been there before and know how to protect assets and optimize cash flow and value under any set of circumstances.”