Phoenix is positioning itself to sell the financially troubled Sheraton Phoenix Downtown Hotel, a move that could force the city and taxpayers to absorb tens of millions of dollars in losses.
City officials from Mayor Greg Stanton to Chief Financial Officer Neal Young said Phoenix is refinancing debt on the hotel so it can get ready to sell the 1,000-room Sheraton, the largest hotel in the state. . .
. . .Councilman Bill Gates, who chairs the body’s finance subcommittee, said it would be in the city’s best interest to sell in the short term if the loss is closer to $10 million or $20 million, but higher amounts become questionable.
“I would support the city selling the hotel at a price that would constitute a small loss if that means we could stop the red ink,” he said. “I don’t want to see us waste the money away by owning a hotel that continues to lose money over a long period of time.”