Village Resort LLC has sold the 146-room Embassy Suites by Hilton Hotel & Spa in La Quinta, California, to Palm Desert Lodging LLC for $21.5 million. Atlas Hospitality Group VP Justin B. Myers represented the seller in the transaction, while Atlas EVP Oliver L. Shah represented the buyer.
The asset includes a 146-suite hotel and lease income from 11 adjacent privately owned casitas. Amenities include a large atrium, outdoor pool and whirlpool, about 8,700 square feet of flexible meeting space, complimentary cooked-to-order breakfast, evening reception, library, business center, fitness center, gaming arcade, guest laundry, gift and snack shop, and the 6,000-square-foot Spa Hibiscus. The Terra Bistro offers lunch, dinner, and a lounge. The 146 two-room suites feature separate living rooms, two flat-screen televisions, wireless internet access, sofa, beds, microwaves, and refrigerators.
Palm Desert Lodging is planning an extensive renovation of the property, including all guest rooms and common areas.
“The sale shows the overall strength of the Coachella Valley,” Myers says. “Historically, the desert has been a seasonal market, but it has now established itself as a robust year-round destination.”
According to a 2018 hospitality investment forecast from Marcus & Millichap, hotel sales activity in the Coachella Valley has picked up 130 percent from where it was four years ago as investors seek to capitalize on new events-driven demand sources. By some ac¬counts, the area’s thriving music-festival scene generated an estimated economic impact of over $800 million last year.