Lionheart Strategic Management and Schroders Capital provided a $23.5 million mezzanine loan to Namastay Development and Hospitality Capital Partners to renovate and recapitalize The Monarch, a 194-key hotel in Old Town Scottsdale, Arizona. Additional financing is being provided via a $29.5 million senior loan.

The Monarch is being rebranded into “Hotel Solaya” by Hyatt. Originally built in 1975, the hotel sits on over six acres and features a restaurant and bar, coffee shop, outdoor pool and bar, fitness center, spa and over 15,000 square feet of meeting space. 

The property is slated to undergo a multimillion-dollar renovation, including comprehensive upgrades and aesthetic enhancements to guestrooms, common areas, F&B venues and exterior elements. Design will be led by Studio 11 and Dreamscape Hospitality will handle on-site property management. 

Andy Klein and Randal Gleeson led the transaction for Lionheart Strategic Management.  Paul Bratten led the transaction for Schroders.