Target Information

Aqua-Aston Hospitality, a prominent hotel and resort management group under Marriott Vacations Worldwide Corporation (NYSE: VAC), is expanding its portfolio by welcoming CopperWynd Resort & Club, located in Scottsdale, Arizona. Notably, this marks Aqua-Aston's first managed resort in the state. Currently, the property is undergoing a significant $60-million renovation and expansion, with completion expected in 2020. Once finalized, CopperWynd will be integrated into Marriott's Autograph Collection Hotels, renowned for offering distinctive travel experiences at luxury lifestyle hotels worldwide.

The Autograph Collection celebrates unique individuality and originality, selecting hotels that promise memorable guest experiences. CopperWynd's transformation from a former tennis resort will aim to set new standards in Scottsdale for resort accommodations, with emphasis on luxurious amenities and immersive connections to the local environment.

Industry Overview in Arizona

The Arizona hotel industry has been experiencing growth, driven by increasing tourism and a thriving economy. Scottsdale, in particular, is renowned for its luxurious resorts and vibrant outdoor activities, making it a popular destination for vacationers seeking leisure and recreation. The hospitality sector has adapted to meet contemporary traveler expectations, favoring wellness offerings and unique, personalized experiences.

The state's diverse appeal, from its stunning desert landscapes to its rich cultural heritage, continues to attract visitors year-round. As wellness tourism gains traction, resorts like CopperWynd that prioritize health, wellness, and outdoor engagement are well-positioned to capitalize on this trend. Additionally, golf tourism remains a big draw for Arizona, with numerous championship courses in close proximity to CopperWynd.

Furthermore, the Arizona hospitality market is becoming increasingly competitive, with both established brands and new entrants vying for customer loyalty. This competitive landscape compels properties to differentiate themselves through innovative services and amenities, aligning with current consumer preferences for unique and personalized travel experiences.

Rationale Behind the Deal

The acquisition of CopperWynd Resort & Club reflects Aqua-Aston’s strategic initiative to enhance its presence in the growing Arizona market. With its ongoing renovation, the resort is poised to attract a niche market of health-conscious travelers and those seeking luxury experiences. This move is not just about expanding the portfolio; it is also about creating a landmark destination that resonates with modern consumer desires.

Joining the Autograph Collection will provide CopperWynd with increased visibility and prestige, leveraging Marriott's established brand recognition to attract discerning guests. The renovation aims to revitalize the property and align its offerings with high-end market trends.

Investor Information

Aqua-Aston Hospitality has a rich legacy in the hospitality sector, spanning over seven decades. Based in Honolulu, the company operates nearly 40 hotels and resorts across Hawaii, the continental U.S., and Central America, offering diverse brands such as Aqua Hotels & Resorts and Aston Hotels & Resorts. Their expertise lies in delivering tailored management and marketing services to meet the evolving needs of travelers.

As an operating business of Marriott Vacations Worldwide Corporation, Aqua-Aston leverages significant industry experience and resources. The company's commitment to high-quality service is complemented by a dedicated 24/7 call center, ensuring travelers receive exceptional support and assistance throughout their stay.

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The decision to invest in CopperWynd Resort & Club is a significant one, marking Aqua-Aston’s commitment to growth in a competitive hospitality market. Given the strategic location of CopperWynd in Scottsdale, combined with its forthcoming transformation into an Autograph Collection property, the investment has substantial potential. The expansive renovations will not only enhance the amenities offered but also redefine the resort's image, enabling it to attract upscale clientele.

Additionally, the focus on wellness and outdoor activities is timely, considering the increasing consumer demand for such experiences. The resort’s proximity to golf courses and nature trails further positions it as an ideal destination for health-conscious travelers and outdoor enthusiasts, which augurs well for its marketability post-renovation.

However, as with any investment, factors such as potential market fluctuations and competition need to be continuously monitored. Should the renovation achieve the envisioned standards, it is likely that CopperWynd will secure a loyal customer base while effectively reaching new demographics, thus affirming the deal as a strategic and promising investment for Aqua-Aston.

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