3 Palms: Prime Investment Opportunity in Scottsdale, AZ

Located in the heart of Scottsdale, Arizona, 3 Palms offers a fantastic investment opportunity with excellent proximity to major attractions, retail hubs, and outdoor parks. This hotel is strategically placed to attract both leisure and business travelers, ensuring a steady stream of demand and strong revenue performance.

Investment Highlights

• Location: 3 Palms is strategically located adjacent to El Dorado Park and just 2.5 km from Old Town Scottsdale. This prime location places the hotel near renowned attractions like the Desert Botanical Gardens, Phoenix Zoo, and Papago Park, making it ideal for tourists.

Amenities

• Outdoor Swimming Pool & Hot Tub: A highly-rated feature by guests, offering relaxation and comfort.
• Fitness Center & Rooftop Terrace: Designed for both fitness and relaxation, providing guests with outstanding amenities.
• Free Parking & Free Wi-Fi: Key features ensuring convenience and accessibility for all guests.

Room Features

• Room Amenities: Each room is equipped with a 50-inch TV, small refrigerator, microwave, and private bathrooms, catering to both short-term and extended stays.

Proven Track Record

• Customer Ratings: The hotel boasts a solid customer rating of 7.2/10 (Rated Good), with a focus on guest comfort and location.
• Attractiveness to Couples: The hotel is especially popular with couples, earning a score of 8.3 for two-person trips, making it an attractive choice for leisure travelers.
• Occupancy Rate: Strong occupancy of 82.26% for the latest quarter.
• ADR (Average Daily Rate): A competitive ADR of $81.03, reflecting solid demand.
• RevPAR (Revenue per Available Room): $66.65, demonstrating the hotel’s strong revenue-generating ability.
• Gross Operating Profit (GOP): The hotel generated $459,004 in GOP for the quarter, showcasing its profitability.

Investment Details

• Address: 7707 East McDowell Road, Scottsdale, AZ, 85257.
• Total Interest (DEBT) / IRR (Equity): 25%
• Target Close Date: 05/31/2026
• Asset Class: Equity

Revenue Streams & Key Terms

• Revenue Streams: The property benefits from diversified income sources, including room bookings, on-site amenities, and event hosting.
• Room Types: The hotel offers various room types, including Deluxe King Rooms, Deluxe King Rooms with Whirlpool, Deluxe Double Queen Rooms, Dual Queen Suites, and King Suites.
• Accessibility: Accessible rooms and parking are available, catering to guests with disabilities.

Value-Add Opportunity

• There is significant potential to increase room rates and occupancy through strategic marketing and management improvements.
• Opportunity for property upgrades or the introduction of additional revenue streams, such as premium services or enhanced packages.

Property Highlights

• Prime Location: The property is conveniently located near major attractions, restaurants, and outdoor parks, offering high demand from both leisure and business travelers.

Expansion Potential

Given the location and guest demographics, there is ample opportunity to expand the property’s offerings or rebrand to a higher-tier hotel, attracting a more premium clientele.

Great Guest Experience

The hotel is highly rated for its clean rooms, comfortable amenities, and excellent location. Guests can also enjoy room service and a fitness center for added convenience and comfort.

Brokerage Disclosure

The transaction will be facilitated by the exclusive broker representing the seller, Cushman & Wakefield. All offers and sales of securities are made only to Accredited Investors, with no guarantees of achieving the targets mentioned. Please review the Risk Factors in the Private Placement Memorandum (PPM) for further details.