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Update: Arlington Hotel Sold to Little Rock Group for $5M

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The Arlington Resort Hotel & Spa in Hot Springs on Monday announced that it has been acquired by Sky Capital Group LP of Little Rock. 

No price for the sale was revealed by Southwest Hotels Inc., the hotel’s owners and operators since 1954. But real estate documents obtained by Arkansas Business show a price of $5.03 million.

The Garland County Assessor’s Office listed its appraised value at $4.88 million.

Bob Martorana, general manager of The Arlington since 2009, told Arkansas Business the sale also included the four-story Wade Building next to the hotel, which has retail shops on its ground floor; a three-story parking garage and a parking lot across from the Majestic Hotel property. Preliminary plans call for renovations, but the extent of those will be determined by Sky Capital going forward, he said.

Sky Capital was incorporated in April by Al Rajabi. In the release, Sky Capital was referred to as the owner and operator of the Four Points Sheraton at 925 S. University in Little Rock. However, the owner of record is Windsor Capital LP, of which Rajabi is a partner; it purchased the Little Rock hotel in 2014.

Rajabi directed Arkansas Business to the news release and said Martorana could answer additional questions. He also said he would have more details to offer at a later date. 

The 404,679-SF Arlington at 239 Central Ave. anchors the city’s Bathhouse Row and is adjacent to the national park. It has 478 rooms, a spa and thermal bathhouse, a 45,000-SF convention center, famous Crystal Ballroom, Venetian Dining Room, mountainside twin cascading pools with hot tub, a Starbucks and an award-winning bar.

“We have long had a strong interest in this grand hotel, its rich history and iconic location,” Rajabi said in the release. “We are excited about the continuing renovations of The Arlington, and are pleased to now become a good corporate citizen in one of America’s great resort cities.”

He also said the group plans to celebrate the hotel’s 100th anniversary in seven years and maintain it as “one of the great American grand hotels.”

“We are truly excited that Sky Capital and Mr. Rajabi are committed to maintaining the historic Arlington’s position as one of the South’s premier resort and convention hotels,” Martorana said in the release.

(Editor’s Note: This story was updated on July 11, 2017 to show the purchase price.)

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