SEDONA, Arizona—Arriba Capital announced the arrangement of a $25,000,000 ground-up construction loan for the Arabella Spa, a hydrothermal spa to be built adjacent to the existing Arabella Hotel in Sedona, Arizona. Arriba Capital served as the exclusive financial advisor and debt arranger for the transaction.
The Arabella Spa will include a hydrothermal circuit, with a wellness experience centered on the therapeutic use of water through varying temperatures, pressures, and mineral compositions. Guests will move through a sequence of saunas, steam rooms, vitality pools, cold plunges, and relaxation lounges designed to improve circulation, reduce stress, and restore balance to the body and mind.
“Financing experiential, wellness-focused hospitality assets requires a different lens,” said Tim Valaski, vice president at Arriba Capital. “While hydrothermal spas are well established in Canada, they represent a relatively new asset class in the U.S. 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.”
