IMH Financial Corporation announced today an agreement that encompasses the sale of L'Auberge de Sedona, Orchards Inn Sedona and 89 Agave Cantina to an affiliate of DiamondRock Hospitality Company. IMH Financial Corporation, through a subsidiary, will continue to manage L'Auberge de Sedona, Orchards Inn and 89 Agave Cantina in Sedona pursuant to a management agreement with an initial term of five years, and has outlined plans to expand the luxury L'Auberge brand into new markets and manage additional properties in the future.
L'Auberge de Sedona, the luxury creekside retreat surrounded by Sedona's enchanting red rocks, and its sister property, Orchards Inn Sedona, were purchased by DiamondRock for $97 million. Following the acquisition, DiamondRock plans to implement well-proven asset management practices at both L'Auberge de Sedona and Orchards Inn and invest in property enhancements to both properties.
"I am confident that the strong relationship between our two organizations will allow both properties to flourish under the ownership of DiamondRock Hospitality Company and the continued leadership and management of IMH Financial Corporation," said Lawrence Bain, Chairman and CEO of IMH. "Our commitment to luxury boutique hospitality assets will allow for IMH to focus on expanding the legacy of the L'Auberge brand as we look to acquire and manage additional properties in new markets."
Under IMH's management, L'Auberge was ranked the number one hotel in the Southwest by Conde Nast Traveler's Readers Choice Awards 2016. The 88-room L'Auberge and the adjacent 70-room Orchards Inn are situated within the heart of Uptown Sedona. Sedona's proximity to the Grand Canyon makes the hotels an ideal destination for visitors looking to explore the Southwest region. Both properties are located within two hours of the Coconino National Forest, breathtaking Red Rocks, and cities such as Phoenix and Flagstaff. Sedona benefits from a vibrant outdoor and artistic climate with nearly 100 hiking trails for outdoor enthusiasts and nearly 100 eclectic art galleries lining the downtown streets.
With the goal of expanding the L'Auberge brand into a collection of hotels, IMH plans to bring the resort's renowned level of luxury, high-touch service and bespoke guest experiences into new markets. Both companies will work closely together to ensure a smooth ownership transition while IMH continues to manage both hotels and the restaurants at each.