Joint venture acquires 216-roomSheraton.

TUCSON, AZ: Investcorp's U.S. based real estate group and Sage Hospitality Resources announced the joint acquisition of The Sheraton Tucson Hotel and Suites in Tucson, Arizona. Specific financial terms of the transaction were not disclosed.

The Sheraton Tucson is a 4-story, 216-room, full-service

"We are pleased to announce the acquisition of the Sheraton Tucson Hotel and Suites, our second acquisition with Sage as a joint-venture partner in the last nine months. The Sheraton Tucson is a well located asset in a market that exhibits solid population and employment growth," said Herb Myers, managing director with Investcorp's real estate group. "Investcorp is an active yet disciplined value-oriented investor and we believe that this asset is well positioned to yield attractive returns for Investcorp and its investors."

Located in Tucson's eastern submarket directly adjacent to the Tucson Medical center, the hotel is located near popular golf, spa, and local sports attractions including Major League Baseball Spring Training Camps. It is also in close proximity to the University of Arizona, Monthan Air Force Base and Raytheon Missile Systems, Tucson's largest employer. Myers added that the property is currently being remodeled with significant upgrades being made to the hotel's exterior and landscaping, guestrooms, common areas and meeting and banquet space.

Walter Isenberg, president and CEO of Sage Hospitality Resources said, "The Sheraton Tucson is an exciting investment and we believe that there is significant untapped potential in this property. The capital improvements we are planning for this hotel will maximize its attractiveness as a location of choice for business travelers, banquet groups, corporate meeting guests and others. This property is an excellent addition to our portfolio in Arizona and nationwide and we look forward to enhancing this location with our focus on outstanding customer service and operational excellence."

The acquisition of the Sheraton Tucson Hotel and Suites continues Investcorp's impressive expansion trend in the western U.S. Other recent acquisitions include a portfolio of office and R&D facilities in the Silicon Valley and The Bravem, a 1.6 million square foot mixed-use development project in Bellevue, Washington.