Project Overview

Arabella Spa will deliver a 20,000+ sq. ft. hydrothermal spa and wellness destination across four new buildings on a multi-tiered 5+-acre site in Sedona, Arizona. The program centers on a complete hydrothermal circuit with three heated pools, two cold plunges, integrated hot tubs, a steam room, wet and dry saunas, and a snow room. Treatment rooms, multiple relaxation areas, and locker rooms support a full menu of facials, massages, and other spa services.

The project introduces a Nordic-style spa concept to Sedona, drawing on models common in Europe and Canada. Arabella Spa is designed to operate as Sedona’s only independent luxury spa and as Arizona’s only destination that offers a full hydrothermal circuit with recreational wellness pools, strengthening the region’s wellness and tourism offering.

Value-Driven Financing Solution

X-Caliber Rural Capital structured a $25MM USDA Business & Industry (B&I) Guaranteed Loan to finance new construction for Arabella Spa. The structure supports a rural-eligible project with substantial upfront construction costs, specialized hydrothermal infrastructure, and a ramp to stabilized, year-round operations.

Long-term amortizing debt facilitates repayment in accordance with the asset’s useful life, while also allowing sufficient time for brand development, membership growth, and operational stabilization. This construction-to-permanent loan approach supports a single, cohesive capital solution from groundbreaking through operations, and helps the project maintain the full scope of its amenity package rather than scaling back pools, wellness features, or treatment capacity to fit a shorter-term or higher-cost structure.