W Hotel builder in venture to open hip Tempe hotel

Peter Corbett |The Arizona Republic

A California development company that is building the W Hotel in downtown Scottsdale on Wednesday announced a $160 million joint venture to buy and develop select-service hotels in the Valley and elsewhere.

Triyar Hospitality will start with a $25 million aloft hotel in Tempe that it plans to break ground on by the end of October, said Michael Mahoney, Triyar chief executive officer.

The five-story, 136-room “aloft,” a new brand of Starwood Hotels & Resorts Worldwide Inc., will be built on about 2.5 acres at Rural Road and Loop 202.

“We believe that Starwood has created a unique product (with aloft) that fills a market void,” Mahoney said.

Triyar is developing the Tempe aloft in a joint venture with Warburg Pincus Real Estate, a private equity fund with office in North America, Europe and Asia.

The partners hope to acquire other hotel properties in Scottsdale and Phoenix, Mahoney said, adding that an announcement is likely by year’s end.

The Tempe aloft will be aimed at younger business travelers looking for a hipper place to stay but at more affordable prices than full-service hotels. Prices will be about $200 per night.

The casual environment of the aloft “is intended to generate a social environment so people don’t just stay in their rooms,” Mahoney said.

A handful of aloft hotels are under development, and Starwood has about 50 pending locations, including Tempe, Glendale and near Phoenix Sky Harbor International Airport.

Triyar and Warburg Pincus are not involved in the other Valley aloft hotels.

Triyar’s $105 million W Hotel in Scottsdale, southeast of Scottsdale and Camelback roads, is scheduled to open in February, Mahoney said.