Hodges Ward Elliott is pleased to exclusively offer the ultra-rare opportunity to redevelop Hotel Sedona Resort + Spa, an A++ located property spanning over 5 acres in the heart of Uptown Sedona, Arizona. Currently operating as the Best Western Plus Arroyo Roble Hotel & Creekside Villas, the existing Property also includes the largest undeveloped infill site in Uptown Sedona and features sweeping Red Rock views, exceptional visibility, and unmatched redevelopment potential.
Offered fully unencumbered, the Property provides the ability to expand the key count and unlock extraordinary value through a strategic repositioning. Included in the offering are three street-front retail units with premium, sought-after frontage along Route 89A, Sedona’s primary tourism corridor. Sedona ranks among the highest RevPAR growth markets in the country, significantly outperforming other Western drive-to leisure destinations, and offers some of the highest “barrier to entry” restrictions in the United States. This is a generational investment opportunity to establish a flagship presence in one of the most supply-constrained and globally recognized hospitality markets.
Property Overview
Set against the backdrop of Sedona’s world-renowned red rock formations, the Property represents one of the most strategically positioned hospitality assets in the region. Located in Uptown Sedona’s vibrant core, the Site offers panoramic canyon views, direct pedestrian access to the area’s top dining, retail, and cultural experiences, and seamless connectivity to nearby outdoor attractions including Oak Creek and Coconino National Forest.
The existing Hotel, featuring 66 well-performing keys, is primed for a transformative repositioning. A comprehensive redevelopment and brand elevation strategy would enhance guest experience, maximize rate potential, and position the Property to capitalize on Sedona’s persistent supply-demand imbalance. With in-place cash flow and embedded physical advantages, the Asset is primed for value creation in one of the most visually iconic leisure markets in the United States.
Existing Arrival: Best Western Plus
Arroyo Roble Hotel & Creekside Villas
Current exterior facade prior to redevelopment
Planned Arrival:
Hotel Sedona Resort + Spa
Rendering of the future repositioned Property
Flexible Redevelopment Opportunity
Importantly, this offering presents investors with a unique dual-path opportunity. An investor may choose to align with current ownership and advance the proposed redevelopment strategy, leveraging the significant planning and design groundwork already in place. Alternatively, an investor can pursue a fully independent acquisition, utilizing the Property’s site configuration development potential to execute a customized repositioning plan aligned with their own vision and investment thesis. The following illustrates existing ownership’s conceptual renderings for the potential transformation of the Property.
INVESTMENT HIGHLIGHTS
Investment Highlights
Gateway to Sedona’s Unrivaled Natural and Cultural Wonders
The Property benefits from a strategic location in one of Arizona’s most celebrated landscapes, surrounded by a broad array of year-round demand drivers. A unique combination of natural beauty, cultural richness, and recreational experiences positions the Hotel to capture consistent demand from leisure travelers, outdoor enthusiasts, and wellness seekers.
Ultra-High-Barrier-To-Entry Market
Since Sedona is known worldwide for its colorful, surreal red rock formations, the market features inherent constraints on new development and supply. Due to the cumbersome permitting process, there are no hotels under construction within a 20- mile radius of the Property.
Since 2009, lodging supply in the Prescott and Sedona hospitality submarket has grown at a minimal 0.5% CAGR, while demand has expanded at a robust 1.9% CAGR (nearly four times faster), demonstrating the submarket’s growing and increasingly favorable lodging conditions.
Sedona Outperforms Premier Leisure Markets
From 2009 to 2024, the Prescott & Sedona hospitality submarket recorded a market-leading 6.1% RevPAR CAGR, outperforming many of the Southwest’s most prominent leisure destinations. Notably, the luxury segment within Sedona delivered an even stronger 8.4% RevPAR CAGR, highlighting the exceptional depth and resilience of demand for upper-tier accommodations.
This sustained growth trajectory positions Sedona not only as the top-performing leisure submarket in the Southwest but also as one of the highest RevPAR growth markets nationally over the past 15 years.
Centrally Located Drive-To Destination
As illustrated in the adjacent map, Sedona enjoys a prime central location within the Southwest, offering convenient access from major metropolitan areas including Phoenix/Scottsdale (115 miles), Tucson (230 miles), Las Vegas (280 miles), and Albuquerque (350 miles). Its low-density, scenic environment, coupled with a concentration of high-quality demand drivers, positions Sedona as a premier drive-to leisure destination for affluent consumers across these key MSAs.
