PHOENIX (July 2, 2009) – Last night, the Phoenix City Council gave the green light for the renovation of the historicArizona Biltmore Resort & Spa, one of Arizona’s premier resort and tourists destinations. The $600 million renovation is projected to generate thousands of new jobs and new revenue for the City of Phoenix.
“Our challenge was to maintain the Biltmore as a historic location, yet update its amenities to continue to be competitive with other major national resorts,” said Ed Riley, senior vice president of Pyramid Advisors, one of the resort’s partners. “With the support of the community, City of Phoenix Historical Preservation Commission, and now the City Council, I think we’ve hit the mark that satisfies both the need to preserve the past and the need to meet the desires of future guests.”
The renovation calls for a new world-class spa with corresponding amenities, a fine-dining restaurant, neighborhood-friendly upgrades to trails, traffic enhancements, pool and landscaping redevelopment, a promenade along the Arizona Canal, a new resort entrance design and 300 new rooms. The renovation will take place in two phases with the first beginning immediately and the second starting sometime before 2030 and will be dependent on demand and market conditions.
The Arizona Biltmore is managed by Hilton Hotels and is a member of Hilton’s exclusive Waldorf Astoria Collection.
“Over the past eight months, we’ve developed strong working relationships with members of the Biltmore community, Camelback East Village Planning Committee, Arizona Biltmore Estates Village Association and the City of Phoenix,” said Nick Wood with Snell & Wilmer, the lead zoning attorney for the project. “It’s those relationships that have allowed the Biltmore to move forward on a renovation project that will generate new jobs and tax revenue, and allow the Arizona Biltmore to maintain its reputation as the “Jewel of the Desert.”
The Biltmore is also the first major property to be rezoned under the new Planned Unit Development (PUD) ordinance, which encourages infill development while providing flexibility for the developer to propose development and design standards that incorporate both the developer’s vision and the community’s feedback concerning the project.
First Phase
The first phase of the project starts with the $120 million spa and its amenities. The design of the spa will proceed immediately. Groundbreaking could take place in late 2010, assuming economic conditions improve. The architect for the spa is the Phoenix office of Gensler & Associates.
Economic Impact
The annual economic output generated by the Biltmore renovation project could total hundreds of millions of dollars annually, according to an economic impact study released in June. During the construction phases, the resort will:
- Generate an annual economic output of $481 million, which includes direct, indirect and induced jobs and wages.
- Employ approximately 700 construction personnel over the course of the first phase
- Generate $135 million in construction personnel wages
- Generate $8.7 million in taxes for the City of Phoenix
Upon completion of the renovations and when fully operational, the resort will:
- Generate an annual economic output of $337 million, which includes direct, indirect and induced jobs and wages, and is an 81 percent increase over the resort’s current estimated annual economic impact.
- Create 3,141 permanent direct, indirect and induced jobs
- Generate $124 million in wages annually from direct, indirect and induced jobs
- Generate $11.6 million tax revenue for the City of Phoenix
The study was commissioned by Pyramid Advisors and conducted by Elliott D. Pollack & Company.
Community Input
Playing a key role in the project is Phoenix City Councilman Sal DiCiccio, who worked with the community and developers to ensure concerns about traffic and public safety were addressed.
“With this vote, we will be able to revitalize the historic Arizona Biltmore and at the same time, protect the surrounding neighborhoods,” Councilman DiCiccio said. “The project will bring $600 million in private investment to our community and the surrounding neighborhoods. This is a win for everyone.”
"For over a year, the residents of the Biltmore community have been immersed in the Resort's Planned Unit Development (PUD)," said Harvey Shrednick, president of the Arizona Biltmore Estates Village Association (ABEVA) board of directors. "Working with the resort's team, the initial application has been significantly shaped by the constructive feedback from people representing the Camelback East Village Planning Committee, the ABEVA board and individual homeowners. These anticipated renovations and upgrades will make this historic site an extraordinary oasis in the midst of a sprawling city."
The Arizona Biltmore Resort & Spa is a partnership between Morgan Stanley, Pyramid Advisors and Investment Partners.
Pyramid Advisors provides asset, project and hotel management services for hotel across the United States with a cumulative value in excess of $5 billion. Some of its hotels include the JW Marriott Desert Ridge Resort & Spa, and two additional Waldorf Astoria Collection hotels, the La Quinta Resort in La Quinta, Calif., and the Grand Wailea Resort Hotel on Maui.