Tucson-based HSL Properties has purchased the Hilton El Conquistador Resort for $15 million, an executive says.
HSL is planning to spend $16 million in rehabilitation and capital improvements on the hotel part of the resort, said Omar Mireles, executive vice president of HSL. Sale of the resort at 10000 N. Oracle Road closed Thursday.
“We’re hitting the ground running,” he said.
The purchase marks step one in a plan for Oro Valley to acquire El Conquistador Resort’s country club and 45 holes of golf.
HSL plans to immediately split off those entities from the resort and sell them to the town for $1 million over three years. The price tag is one-third of its appraised market value.
Mireles said HSL hopes to finalize that sale by March 1.
The Oro Valley Town Council voted Wednesday to approve the purchase of the country club and golf courses. The town plans to turn the 31,475-square-foot club building into a community center and to contract out the golf course operations. The purchase of the 30-year old facilities will be funded by a sales-tax increase. About $5.5 million in renovations will be needed over five years, town projections show.
Mireles said HSL’s rehab work on the hotel will take place over the next 12 to 18 months, mostly in the slower summer months.
“The tricky part of the operation is doing a rehab while the property will still be open for business and obviously making sure we don’t get in the way of guests,” he said.
