In a move that steers the Westin Tempe away from the potential auction, its owners have proactively secured a $93 million loan extension, retaining their grasp on the property. According to a report from ABC15, the Las Vegas-based CAI Investments, responsible for the hotel's development and ownership, finalized the deal with their primary lender, Dallas's Hall Structured Finance. The Tempe Westine, boasting 290 rooms in the heart of downtown Tempe, sidestepped an imminent sale in the nick of time.

Troubles arose for the hotel, situated at 11 East 7th St. after CAI Investments missed several mortgage payments, which led to Hall Structured Finance's move to auction off the establishment. During April and May, while a series of auction delays unfolded, CAI negotiated with Hall. They eventually reached terms on a loan extension, which Hall Structured Finance confirmed with a cancellation of notice of sale, filed on June 4, per Phoenix Business Journal.

In the face of an uncertain economic climate that affected financing and exit strategies throughout 2023, CAI managed to secure the loan extension under conditions "more favorable than the general market," stated the company. Flexibility contained within the terms includes an extension option and no prepayment penalty. The company asserts this development enhances the likelihood of the hotel's success, keeping in line with CAI's original investment aims.

Christopher Beavor, CEO and founder of CAI Investments said in a statement obtained by Phoenix Business Journal, "We are open to these and any other opportunities that may be presented that will benefit investors." With the influx of fresh capital, CAI is toying with strategies embracing refinancing, an outright sale with improved net operating income, or mulling over the creation of a Delaware Statutory Trust offering. "We have never stopped actively pursuing options for this fantastic property located in a growing city. We know that this is a strong asset," Beavor emphasized.

The Westin Tempe opened its doors back in 2021 as a premium choice for business travelers converging on one of the Valley's burgeoning business hubs. Its pitch also catered to leisure patrons through amenities, including a rooftop pool and numerous dining options, which led to multiple accolades within the hospitality sector.