Upscale independent hotel, Arabella Hotel Sedona, in Arizona, US, will build an extensive hydrotherapy spa using a US$25 million (€23.0 million, £19.5 million) construction loan.

The loan was arranged by real estate investment banking firm Arriba Capital, which specialises in hotel debt and structured finance.

The new hydrothermal spa

The hydrotherapy spa has been designed by architects Erwin Architecture and Development and LemayMichaud.

Tim Valaski, Vice President at Arriba Capital, told Spa Business: “The spa will measure approximately 21,200sq ft across four buildings. 

“There will be 14 treatment rooms, a spa cafe, patio bar, a lounge and retail boutique,” he added.

The hydrotherapy circuit will feature a sequence of facilities, including three heated outdoor vitality pools, two cold plunges, steamrooms and saunas, a snow room, salt scrub room and both indoor and outdoor relaxation areas.

The concept is rooted in centuries-old European bathing traditions and is centred on the therapeutic use of water. The facilities will offer experiences using varying temperatures, pressures and mineral compositions. 

Valaski added: "Financing experiential, wellness-focused hospitality assets requires a different lens. While hydrothermal spas are well established in Canada, they represent a relatively new asset class in the US market. Our role was to structure a loan that balanced construction risk with long-term operational value, a structure few lenders understand in this niche.”

The 144-key estate was historically home to a lodge and soundstage, which were created to support the production of many Western films that were directed in the region between the 1940s and 1960s. 

Celebrities including John Wayne, Elvis Presley and Marlon Brando all appeared in films produced in the region.

The hotel currently has a restaurant and lounge and arranges events such as stargazing, canyon hikes or biking trips.

It also has two heated pools – one of which is 9 feet deep and was supposedly built at Elvis Presley’s request for a diving pool when he visited to film in the area.