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Garden Classic Gone but not forgotten Paradise Valley border 1970–2004

La Posada Resort: The Grotto Bar Paradise Valley Still Dreams About

The 1970s hacienda sprawl on Lincoln Drive whose lagoon pool and swim-up grotto bar — a waterfall-curtained cave you floated into — made it three generations of Valley kids' favorite resort memory. Sold for $31 million in 2004 and razed for the Montelucia, it survives as the corridor's most fondly mourned ghost.

Illustration of La Posada Resort, garden classic in Paradise Valley border, Scottsdale, Arizona

The 30-second version

  • La Posada Resort opened in the 1970s on 34 acres at Lincoln Drive and Tatum's resort belt, a Spanish-hacienda spread in the corridor's garden-resort tradition.
  • Its legend was the pool: a lagoon complex with a waterfall-fronted grotto swim-up bar that generations of locals rank as the Valley's greatest resort water feature.
  • It ran its later decades under the DoubleTree flag as an affordable, family-loved classic amid an increasingly upscale corridor.
  • Developer Robert Flaxman bought the aging property for $31 million in 2004, initially to restore it — then demolished everything for the $335 million Montelucia.
  • Nothing survives on site; the grotto bar lives on in Valley nostalgia threads and this archive.

Ran

1970–2004

Where

4949 E Lincoln Dr (site now Omni Montelucia)

Rooms at peak

~250 rooms & casitas

Famous for

The swim-up grotto bar

The legend

Swim-up grotto bar

Sold

$31M, 2004

Successor

The Montelucia

What was La Posada?

Ask Valley natives of a certain age about lost resorts and the Safari gets respect, Mountain Shadows gets reverence — but La Posada gets longing, and the longing has a shape: a swim-up grotto bar behind a waterfall. Opened in the 1970s on 34 acres of Lincoln Drive’s resort belt, La Posada was hacienda-style hospitality in the corridor’s garden tradition — arches, tile, lawns — wrapped around the most beloved pool complex the Valley has ever built: a lagoon with slides, waterfalls, and the cave you swam into, through the water curtain, to order a piña colada in dripping bliss.

That grotto did cultural work no marble lobby ever managed. Through the ’70s, ’80s and ’90s — the later decades under the DoubleTree flag — La Posada was the corridor’s approachable resort: staycation central, birthday-party headquarters, the place grandparents booked when the whole family came. While neighbors chased stars (Camelback Inn) and status, La Posada banked joy, and three generations banked the memories.

The ending was the corridor’s standard math executed at scale. In 2004, developer Robert Flaxman’s Crown Realty paid $31 million for the tired property, floated restoration, then chose the graders: everything came down, and the $335 million Montelucia — Andalusian, exquisite, grotto-less — opened on the acres in 2008. Fair trade? The Montelucia is objectively the finer resort. But nobody’s childhood happened there yet.

Why La Posada mattered

It democratized the corridor’s magic. Lincoln Drive’s resorts ran exclusive by design; La Posada ran inclusive — mid-market rates, family programming, a pool built for cannonballs. For countless Valley families it was the only corridor address they ever checked into, which made it the corridor’s ambassador to its own city.

The grotto invented the local pool arms race. Every waterfall wall, swim-up bar and lagoon complex in the market — Gainey’s water playground, the Princess’s slides, the whole genre — competes with a memory of La Posada’s cave. It established that in a desert market, the pool could be the brand.

It proved the staycation economy. Decades before the industry named it, La Posada ran on locals — summer deals, holiday buffets, the metro’s own families filling rooms tourists left empty. The playbook every Valley resort now runs in July was written at 4949 E Lincoln.

Its mourning changed the conversation. The 2004 demolition drew none of the Safari’s preservationist fury — the architecture was unremarkable — but the grief was broader, and it taught the market something subtle: heritage isn’t only buildings. The reborn Mountain Shadows resurrecting its rituals rather than its walls, three years later, suggests somebody was listening.

The people’s resort on millionaires’ row

La Posada’s 1970s birth filled a structural gap. The corridor’s first generation (Camelback Inn, Casa Blanca, Mountain Shadows) served wealth; the coming generation (the Plaza, 1976; the Registry, 1977) would serve corporate scale. La Posada aimed between: hacienda charm at family prices, on Lincoln Drive frontage that was still — briefly — cheap enough to justify it. The lagoon-and-grotto investment was the masterstroke: capital poured into play rather than prestige, at the exact moment the baby boom’s children needed somewhere to swim. The result was a market position no competitor contested because none could — the land under any imitator already cost too much for mid-market math.

The DoubleTree decades (flag economics arriving, as everywhere on the corridor, in the ’80s–’90s consolidation) sustained the formula while quietly starving it: brand distribution filled rooms, but renewal capital flowed to the chain’s growth markets, and La Posada aged in the specific way beloved family resorts do — carpet by carpet, invisible to regulars, glaring to appraisers. By 2000 the corridor’s land-value curve had gone vertical (the Montelucia’s eventual $335 million budget measures the delta), and a mid-market operation on 34 prime acres was an arbitrage waiting for its developer.

Flaxman’s 2004 purchase-restore-pivot-demolish sequence — identical in shape to the era’s Smoke Tree and Mountain Shadows plays — closed the book. What distinguishes La Posada’s afterlife is the texture of its memory: not architectural mourning but sensory nostalgia — chlorine, waterfall thunder, the grotto’s echo — preserved in Valley social-media threads with an intensity the grander losses never attract. Historians of leisure would recognize the pattern: the sites of childhood joy outrank the sites of adult status in a city’s emotional archive, every time.

The final irony is geographic. The Montelucia sells transportive fantasy — you are in Andalusia — on ground whose previous tenant sold the opposite: you are home, and home has a grotto. Both are honest products. Only one of them still takes reservations, and only the other one still takes up space in ten thousand Valley memories of being eight years old in August, swimming through a waterfall toward a Shirley Temple.

The La Posada Resort timeline

  1. 1970s

    La Posada opens on Lincoln Drive — hacienda architecture, lagoon landscaping, and the corridor's most playful pool complex.

  2. 1980s

    Peak grotto: the swim-up cave bar becomes a Valley institution, and La Posada the corridor's family-favorite address.

  3. 1990s

    Under the DoubleTree flag, the resort ages into the affordable classic of an increasingly luxury-bound corridor.

  4. 2004

    Robert Flaxman's Crown Realty buys the property for $31 million with restoration talk; assessment favors demolition.

  5. 2004–08

    The wrecking crews clear the site; the $335 million Montelucia rises on La Posada's acres.

  6. Today

    The Omni Montelucia's Andalusian village occupies the site; La Posada persists as the corridor's most affectionately remembered loss.

Questions people actually ask

Where was La Posada Resort?

At 4949 E Lincoln Drive in Paradise Valley — the exact site of today's Omni Montelucia, which replaced it after the 2004 sale and demolition.

What was the grotto bar?

La Posada's signature: a swim-up bar built into an artificial rock grotto behind a waterfall on the lagoon pool — you swam through the water curtain to order. For Valley kids of the 1970s–90s it defined what a resort pool could be, and no local nostalgia thread omits it.

Was La Posada a DoubleTree?

In its later decades, yes — the independent 1970s resort eventually flew the DoubleTree flag, running as the corridor's approachable classic while neighbors went five-star.

Why was La Posada demolished?

Developer Robert Flaxman bought the aging resort in 2004 for $31 million intending restoration, but concluded the structures weren't worth saving and built the Montelucia new — a $335 million project that opened in 2008.

Does anything remain of La Posada?

On site, nothing — the Montelucia covers it completely. The name survives in a neighboring luxury-villas development's branding and in the Valley's collective pool memory.

Facts checked: September 6, 2026 • Curated by Matt Cheramie • A "Gone but not forgotten" entry: this resort has closed and is kept here as Scottsdale history.