NEW OWNER: Arlington Hotel gets a buyer.
AL RAJABI: Leads hotel investors.
Hot Springs' historic Arlington Hotel
has been sold to the Sky Capital Group LP
, an investment group whose properties include the Four Points Sheraton at University Avenue and I-630 in Little Rock and which is related to an investor with other hotel properties in Texas.
Opened in 1924, the property has been owned by Southwest Hotels,
but has deteriorated in recent years, to the point that it faced city safety enforcement action before some corrective work began last year. A sale of the property, owned by the Scott family, was discussed at that time.
i is CEO of Sky Capital. He posted on a LinkedIn account, which gives his home as San Antonio:
Here it is my Friends!!!! I'm very excited about my latest project!!!! The Arlington Resort Hotel and Spa. Hot Springs Arkansas are you ready???
No price was disclosed, but Arkansas Business, citing real estate documents, put the price at $5 million. Rajabi's
release said he was attracted by the "rich history" and "iconic location." It referred to "continuing renovations" and said the company would work to "maintain it as one of the great American grand hotels."
Grady Manning founded Southwest Hotels in 1929. The Arlington has 478 rooms and resort facilities, as well as a bathhouse.
The hotel's current general manager, Bob Martorana
, is quoted as praising the deal.
Rajabi bought the hotel he now operates as a Sheraton out of foreclosure for $5 million in 2014. He said on his LinkedIn page that it's now enjoying 95 percent occupancy.
The transaction includes the Wade Clinic building, a four-story adjacent building to the north, and the parking garage and the Majestic parking lot across from the Majestic hotel, Martorana told me.
Martorana said he'd be remaining as general manager and about 90 percent of the staff will remain. "It's business as usual until we but a game plan together." He said he anticipated some major renovations, but deferred questions on those specifics, both amount
and timeline, to Rajabi.
The news release.