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Relax Hotel & Spa 67485 Hacienda Ave 40 Room Hotel Desert Hot Springs, CA 92240 $5,690,000 ($142,250/Room)
INVESTMENT HIGHLIGHTS
- Rare Hot Springs Hotel investment opportunity offering a recently renovated 40-key hotel powered by natural mineral hot spring water.
- Hotel amenities include three spa areas, a large resort-style pool, an indoor sauna, renovated interiors, and sweeping desert views.
- Perfect fit for a new owner to add value and transform the site into a boutique resort, wellness retreat, or destination lodging concepts.
- Relax Hotel & Spa’s recent capital improvements have reduced deferred maintenance, allowing for immediate operational upside.
- Located in one of Southern California's fastest-growing wellness tourism markets, near Coachella Valley events and Joshua Tree.
EXECUTIVE SUMMARY
The 40-room hotel presents an excellent opportunity for transformation into a boutique wellness resort, spa hotel, retreat center, or recovery-focused hospitality concept. Investors can capitalize on potential gains through renovation, rebranding, increasing the average daily rate (ADR), and expanding spa or membership offerings. The property boasts multiple revenue streams, including three spa areas, a large resort-style pool, and an indoor sauna. Additional amenities include a beautifully landscaped courtyard and ample parking surrounded by desert views.
The property benefits from strong regional tourism, limited competing supply, and growing demand for experiential wellness travel. Relax Hotel & Spa has proximity to Palm Springs, Coachella Valley events, and Joshua Tree National Park, along with Desert Hot Springs' global reputation for therapeutic mineral water. This asset is ideal for 1031 exchange buyers seeking a unique hospitality investment with tangible differentiation.
SALE FLYER
FINANCIAL SUMMARY (PRO FORMA - 2026) |
ANNUAL | ANNUAL PER SF |
|---|---|---|
| Gross Rental Income |
$2,000,000
|
$99.03
|
| Other Income |
-
|
-
|
| Vacancy Loss |
-
|
-
|
| Effective Gross Income |
$2,000,000
|
$99.03
|
| Taxes |
$71,125
|
$3.52
|
| Operating Expenses |
$1,428,875
|
$70.75
|
| Total Expenses |
$1,500,000
|
$74.27
|
| Net Operating Income |
$500,000
|
$24.76
|
FINANCIAL SUMMARY (PRO FORMA - 2026)
| Gross Rental Income | |
|---|---|
| Annual | $2,000,000 |
| Annual Per SF | $99.03 |
| Other Income | |
|---|---|
| Annual | - |
| Annual Per SF | - |
| Vacancy Loss | |
|---|---|
| Annual | - |
| Annual Per SF | - |
| Effective Gross Income | |
|---|---|
| Annual | $2,000,000 |
| Annual Per SF | $99.03 |
| Taxes | |
|---|---|
| Annual | $71,125 |
| Annual Per SF | $3.52 |
| Operating Expenses | |
|---|---|
| Annual | $1,428,875 |
| Annual Per SF | $70.75 |
| Total Expenses | |
|---|---|
| Annual | $1,500,000 |
| Annual Per SF | $74.27 |
| Net Operating Income | |
|---|---|
| Annual | $500,000 |
| Annual Per SF | $24.76 |
PROPERTY FACTS
| Price | $5,690,000 | No. Rooms | 40 |
| Price Per Room | $142,250 | No. Stories | 2 |
| Sale Type | Investment | Year Built/Renovated | 1988/2025 |
| Property Type | Hospitality | Tenancy | Single |
| Property Subtype | Hotel | Parking Ratio | 2.53/1,000 SF |
| Building Class | C | Corridor | Exterior |
| Lot Size | 1.67 AC | Opportunity Zone |
Yes
|
| Building Size | 20,196 SF | ||
| Zoning | VS - Visitor Serving | ||
| Price | $5,690,000 |
| Price Per Room | $142,250 |
| Sale Type | Investment |
| Property Type | Hospitality |
| Property Subtype | Hotel |
| Building Class | C |
| Lot Size | 1.67 AC |
| Building Size | 20,196 SF |
| No. Rooms | 40 |
| No. Stories | 2 |
| Year Built/Renovated | 1988/2025 |
| Tenancy | Single |
| Parking Ratio | 2.53/1,000 SF |
| Corridor | Exterior |
| Opportunity Zone |
Yes |
| Zoning | VS - Visitor Serving |
AMENITIES
- Pool
- Spa
- Outdoor Pool
- Public Access Wifi
- Hot Tub
ROOM MIX INFORMATION
| DESCRIPTION | NO. ROOMS | DAILY RATE | SF |
|---|---|---|---|
| Guest Room | 40 | $73.00 | - |
ABOUT PALM SPRINGS
Palm Springs is one of Southern California’s most established leisure destinations, with hotel demand anchored by a deep calendar of recurring events, seasonal visitation, and lifestyle-driven travel. Demand peaks during the cooler months, when visitors are drawn by golf, wellness, arts, and outdoor recreation, reinforcing the market’s reputation as a premier desert resort destination.
Signature events are central to annual visitation. The Palm Springs International Film Festival, held each January, anchors the winter season by attracting tens of thousands of film industry professionals, media, and leisure travelers. Nearby La Quinta and Indian Wells further strengthen demand in January with the American Express PGA Tour event, which generates extended hotel stays from players, sponsors, and spectators. In March, the BNP Paribas Open in Indian Wells delivers two weeks of elevated hotel demand across the Coachella Valley, reinforcing Palm Springs’ peak seasonal performance.
Spring demand is elevated by large-scale music and cultural festivals. The Coachella Valley Music and Arts Festival and Stagecoach Festival, held annually in April, rank among the region’s most significant hotel demand drivers. These events attract hundreds of thousands of visitors and routinely create near-sellout conditions throughout Palm Springs and surrounding communities, producing some of the highest room-night volumes and rate compression in the Western United States.
Beyond marquee events, continued public and private investment enhances Palm Springs’ year-round appeal. Downtown revitalization efforts, including streetscape improvements, public art installations, and adaptive reuse of historic buildings, have strengthened walkability and visitor engagement. At the same time, Palm Springs International Airport has expanded air service and completed terminal upgrades, improving connectivity to major West Coast and select national markets. Combined with strong drive-to access from Southern California, these factors reinforce Palm Springs’ position as a resilient, event-driven resort market.
PROPERTY TAXES
| Parcel Number | 642-164-007 | Total Assessment | $3,111,990 (2025) |
| Land Assessment | $708,992 (2025) | Annual Taxes | $71,125 ($3.52/SF) |
| Improvements Assessment | $2,402,998 (2025) | Tax Year | 2026 |
PROPERTY TAXES
SALE ADVISOR
SALE ADVISOR
Brian Palmer, President
Grounded in integrity and driven by excellence, Brian leads a high-performing team dedicated to delivering results through cutting-edge marketing, strategic negotiation, and unmatched market knowledge. His dual expertise in real estate and property lending provides clients with a distinctive advantage — allowing them to navigate both the property and financing sides of the transaction with confidence.
Whether you're buying, selling, investing, or securing a property loan, Brian Palmer provides an elevated level of service that ensures a smooth, successful experience from start to finish.
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Relax Hotel & Spa | 67485 Hacienda Ave
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