Phoenician Resort
A luxury resort at the base of Camelback Mountain in Scottsdale, Arizona.
Last updated August 25, 2026
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Overview
The Phoenician Resort is a luxury resort in Scottsdale, Arizona, located at the base of Camelback Mountain on a large landscaped property. It was developed on land associated with several earlier Valley facilities, including the historic Jokake Inn, Elizabeth Arden’s Maine Chance Spa, the Paradise Inn, the Valley Country Club, and the El Estribo Lodge. Financier Charles Keating acquired the property in 1985 and pursued an ambitious plan for a large destination resort. The project was designed to combine upscale accommodation, extensive recreational amenities, dining, spa services, landscaped gardens, and convention facilities in a single Arizona property. The resort opened on October 1, 1988. Its original development reportedly cost more than $300 million and included 604 hotel rooms, 132 casitas, a VIP suite, and a presidential suite. The architecture and interiors were conceived as highly elaborate luxury features, including a lobby dome covered in 24-karat gold and extensive marble imported from Carrara, Italy. The grounds incorporated a substantial cactus garden and tropical landscaping, while the opening-era music program included nine Steinway grand pianos. The property’s development was promoted as a world-class resort, although its scale and financing quickly became linked to the financial problems of its principal developer. Keating’s ownership was short-lived. In 1989, following his indictment in connection with the savings and loan crisis, the resort was seized by the federal government. During the temporary period of government operation, it acquired the informal nickname “Club Fed.” The government subsequently sold the property to the Kuwaiti Investment Office. The Kuwaiti interests had held a substantial minority position before the seizure and later acquired the remaining interest for $111.5 million. The resort changed hands again in 1994, when the Kuwaiti owners sold it to ITT Sheraton. ITT Sheraton was later absorbed by Starwood Hotels & Resorts Worldwide in 1998. Under the Starwood period, the property expanded and underwent significant modernization. A new ballroom was added in 2010 at a reported cost of $40 million, and approximately $80 million in renovations were carried out between 2010 and 2012. Those renovations included Canyon Suites, a separate resort-within-a-resort area containing 60 rooms, including suites and presidential suites. The Phoenician’s offering has historically extended beyond guestrooms. The property includes multiple restaurants, swimming pools, tennis courts, a spa and wellness operation, landscaped gardens, meeting and event spaces, and a 27-hole golf course designed by Ted Robinson and Homer Flint. The course consists of three nine-hole layouts and has been described as a United States Golf Association championship course. The resort also installed a solar array during the 2000s to help meet its energy requirements and has maintained an art collection valued in reference materials at approximately $25 million. In 2015, Host Hotels & Resorts purchased the property from Starwood. Reference material describing the resort in February 2016 lists 643 rooms, including 62 suites, across approximately 250 acres, together with eleven restaurants, nine swimming pools, eleven tennis courts, and the golf course. The Phoenician has also maintained a strong luxury-service positioning through external ratings. It received its first five-star rating from the Mobil Travel Guide in 1994, and reference material states that it received either a four- or five-star rating each year through 2015. It has also received AAA Five-Diamond recognition. The resort remains principally positioned as a high-end leisure, golf, spa, dining, wedding, and meetings destination in the Scottsdale market.
History
The Phoenician was developed on a historically established resort and hospitality site at the foot of Camelback Mountain in Scottsdale. The property included the Jokake Inn and Elizabeth Arden’s Maine Chance Spa, as well as the Paradise Inn, Valley Country Club, and El Estribo Lodge. In 1985, financier Charles Keating acquired the acreage and began planning an unusually ambitious luxury resort. He commissioned Killingsworth, Stricker, Lindgren, Wilson and Associates of Long Beach, California, for the architectural work, while JGL Associates of Vermont designed the Centre for Well Being spa. Construction emphasized scale and decorative richness. The resort used white marble imported from Carrara, Italy, and employed landscape craftsmen from Tonga to create its tropical surroundings. Its lobby dome was finished with 24-karat gold, and the grounds included a cactus garden containing more than 250 varieties. The opening complex also featured nine Steinway grand pianos, described in reference material as the largest order in the company’s history at that time. Development costs exceeded $300 million. The hotel began operating on October 1, 1988, with 604 rooms, 132 casitas, a VIP suite, and a presidential suite. The project’s financial and ownership history soon became turbulent. After Keating was indicted in 1989 for his role in the savings and loan crisis, the resort was seized by the federal government. During the government’s short period of operation, it was informally called “Club Fed.” The property was then sold to the Kuwaiti Investment Office, which already held 45 percent of the hotel and paid $111.5 million for the remaining 55 percent. In 1994, the Kuwaiti owners sold the resort to ITT Sheraton. ITT Sheraton became part of Starwood Hotels & Resorts Worldwide in 1998, placing the resort within Starwood’s hotel portfolio. The property later underwent a substantial physical expansion and refurbishment. A new ballroom was completed in 2010, and an approximately $80 million renovation program from 2010 to 2012 added Canyon Suites. This area was designed as a separate luxury compound within the larger resort and contained 60 rooms, including 38 suites and two presidential suites. The resort’s facilities developed into a broad destination offering. In reference material describing the property in 2016, it had 643 rooms, including 62 suites, on approximately 250 acres. Its amenities included eleven restaurants, nine swimming pools, eleven tennis courts, a 27-hole golf course, meeting and event facilities, spa services, and a substantial art collection. The golf complex was designed by Ted Robinson and Homer Flint and consists of three nine-hole courses with distinct layouts. The resort also installed a solar array during the 2000s to contribute to its energy supply. The property’s ownership changed again in 2015, when Host Hotels & Resorts purchased it from Starwood. Its luxury positioning has been reinforced by industry recognition. The resort received its first five-star Mobil Travel Guide rating in 1994; the Mobil guide later became Forbes Travel Guide. The available reference material states that it received either a four- or five-star rating annually through 2015. It has also received AAA Five-Diamond recognition. The combination of high-end lodging, golf, spa, dining, outdoor recreation, and large event facilities has made the Phoenician a prominent resort property in the Scottsdale hospitality market.
- 2015
Host Hotels & Resorts becomes owner
[1]Host Hotels & Resorts purchased the property from Starwood.
- 2012
Canyon Suites renovation completed
[1]A broader renovation program completed between 2010 and 2012 created Canyon Suites, a 60-room luxury enclave within the resort.
- 2010
Ballroom expansion
[1]A new ballroom was added to increase the resort’s event and meetings capacity.
- 1998
ITT Sheraton becomes part of Starwood
[1]ITT Sheraton was absorbed by Starwood Hotels & Resorts Worldwide, placing the Phoenician within Starwood’s portfolio.
- 1994
Sold to ITT Sheraton and receives first Mobil five-star rating
[1]The Kuwaiti owners sold the resort to ITT Sheraton. The property also received its first five-star rating from the Mobil Travel Guide.
- 1989
Ownership is disrupted by federal seizure
[1]The resort was seized after Charles Keating’s indictment related to the savings and loan crisis, and the federal government temporarily operated the property.
- 1988
Resort opens
[1]The Phoenician opened for business on October 1 with 604 rooms, 132 casitas, a VIP suite, and a presidential suite.
- 1985
Charles Keating acquires the resort site
[1]Charles Keating purchased the Camelback Mountain property, including the historic Jokake Inn, Maine Chance Spa, and several other Valley facilities, and began planning a major luxury resort.
Products and positioning
A high-end Arizona destination resort focused on luxury accommodation, golf, spa and wellness, dining, landscaped outdoor recreation, and business and social events.
Accommodation · 1988
Luxury guestrooms and suites
The resort’s core offering consists of upscale hotel rooms, suites, casitas, VIP accommodation, and presidential suites. Reference material describes the property as having expanded from its original 604-room configuration to 643 rooms, including 62 suites, by February 2016.
Luxury accommodation · 2012
Canyon Suites
Canyon Suites is a distinct luxury area designed as a resort within the larger Phoenician. Created during the 2010–2012 renovation program, it contains 60 rooms, including 38 suites and two presidential suites.
Wellness
Spa and wellness facilities
The property includes spa and wellness services that trace part of the site’s hospitality history to Elizabeth Arden’s Maine Chance Spa. The resort’s wellness positioning complements its accommodation, leisure, and destination-retreat offerings.
Golf
27-hole golf course
Designed by Ted Robinson and Homer Flint, the golf complex comprises three nine-hole courses, each with a different character. Reference material describes it as a USGA championship course and identifies it as a major recreational component of the resort.
Controversies
1989
Charles Keating and the savings and loan crisis
The resort’s original developer, Charles Keating, was indicted in connection with the savings and loan crisis. Federal authorities seized the property, which they operated temporarily before selling it to the Kuwaiti Investment Office.
Brand decisions
2012
Create a resort-within-a-resortStrategyBackground
The property undertook a major renovation intended to deepen its luxury positioning and refresh its accommodation offering.
Action taken
The renovation program created Canyon Suites as a separate, higher-end accommodation area within the resort.
Aftermath
Canyon Suites added 60 rooms, including suites and presidential suites, to the property’s premium inventory.
Renovation investment. $80 million (2010-2012)
2010
Expand event capacity with a new ballroomOtherBackground
The resort pursued additional capacity for meetings and large social events.
Action taken
A new ballroom was added to the property.
Aftermath
The expansion strengthened the resort’s ability to host large-scale gatherings.
Recent events
- 2015
Host Hotels & Resorts purchases the property[1]
M&A
Host Hotels & Resorts acquired the Phoenician from Starwood Hotels & Resorts Worldwide.
- 2012
Major renovation program creates Canyon Suites[1]
Other · Product generation
A renovation program carried out between 2010 and 2012 included the development of Canyon Suites, a resort-within-a-resort concept with 60 rooms.
- 2010
New ballroom added[1]
Other
The resort added a ballroom as part of its expansion of meetings and event capacity.
Kuwaiti Investment Office acquires remaining resort interest[1]
M&A
Following the federal seizure, the Kuwaiti Investment Office purchased the remaining 55 percent interest in the property for $111.5 million.
Sources1 sources
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