Poco Diablo Resort in Sedona, Arizona Sold

Chicago-based real estate investor and operator Waterton has announced the purchase of Poco Diablo Resort, a 137-room hotel in Sedona, Arizona. The hotel, situated on 18 acres adjacent to Oak Creek, will be rebranded as Outbound Sedona, making it the fifth hotel under Waterton’s Outbound Hotels brand. The brand specializes in lifestyle hotels located in beautiful outdoor destinations and currently manages 690 rooms across five properties.

Waterton plans to renovate the hotel, offering an outdoor-inspired, upscale lifestyle accommodation. The renovated property will feature serene Red Rock views, a superior spa experience, and revamped guest rooms. Denver-based CoralTree Hospitality will handle the operation of Outbound Sedona.

Matt Mering, Executive Vice President of hospitality at Waterton, highlighted Sedona’s market potential, referring to it as robust and top-tier. He expressed enthusiasm about the property’s unique location and existing offerings, which already attract both locals and global tourists. Mering also believes that this acquisition will enhance Outbound Hotels’ reputation as a leading brand in the experiential travel sector.

Poco Diablo features sweeping views of red rock formations and provides easy access to Red Rock State Park and numerous hiking trails. Waterton plans to expand on the renovations initiated by the previous owners, which included redesigning the lobby and on-site restaurant. In addition, the resort’s 8,500 square feet of indoor/outdoor event space, ideal for corporate retreats and weddings, will be preserved.

The resort’s expansive courtyard will be redesigned to include a new swim experience featuring a heated pool and hot tub with rock formations and zero gravity lounging options. The existing hotel pool will be refreshed with greenery and new furnishings. The spa services space will also be expanded to include new treatment rooms, repurposing the underutilized fitness center.

Located conveniently near several large metropolitan areas and iconic southwest destinations such as the Grand Canyon, Sedona is an attractive location for tourists, attracting over 3 million visitors annually. The area boasts year-round appeal due to its proximity to over 100 hiking trails and the shopping, dining, and retail options of downtown Sedona.

Outbound Hotels, founded by Waterton in 2023, now has a portfolio of five outdoor-inspired lifestyle properties in locations including Sedona, AZ; Jackson Hole, WY; Stowe, VT; Mammoth Lakes, CA; and Yosemite, CA. The brand is exploring opportunities in other premier, nature-oriented destinations, with plans to add 10-20 more locations over the next five years.