Namastay Development and Hospitality Capital Partners have secured a $23.5 million mezzanine loan from Lionheart Strategic Management LLC (an affiliate of Fisher Brothers) and Schroders Capital to fuel a comprehensive rebrand and renovation of the Monarch Hotel in Old Town Scottsdale at 4000 N Drinkwater Blvd.
The project includes a major transformation of the hotel’s food and beverage program as it relaunches under the JdV by Hyatt brand as “Hotel Solaya,” according to InBusinessPHX. In total, the project is backed by $53 million in financing, including a $29.5 million senior loan, enabling a top-to-bottom refresh of the 194-room property. A central element of the repositioning is the introduction of vibrant new dining and hospitality experiences aimed at both guests and locals.
Originally built in 1975, the hotel spans over six acres and will feature upgraded food and beverage venues, including a reimagined signature restaurant and bar, an artisanal coffee shop, and a revamped poolside bar experience. These enhancements aim to make Hotel Solaya a culinary and social destination in Scottsdale’s thriving hospitality scene.
“The redevelopment of Hotel Solaya is an exciting opportunity to curate standout food and beverage offerings that reflect the unique personality of the JdV by Hyatt brand,” Andy Klein, Managing Director and Co-Head of Investments at Lionheart Strategic Management, said in a news release. “In high-growth markets like Scottsdale, exceptional F&B programming is a key differentiator.”
Design for the new spaces will be led by Studio 11, with hospitality management provided by Dreamscape Hospitality. Guests can expect elevated design and culinary storytelling across all dining outlets, contributing to a full-sensory experience throughout the property.
Paul Bratten, Head of US Real Estate Debt Investments for Schroders, added, “The emphasis on food and beverage not only enhances the guest experience, but also positions Hotel Solaya to become a gathering place for the local community. It’s a smart and strategic investment in long-term value.”
WAY Capital served as advisor to Namastay in the transaction. Andy Klein and Randal Gleeson led the transaction for Lionheart Strategic Management, while Paul Bratten led the effort for Schroders.
