Regions West | Orange County
Oct 26, 2007
By: Dees Stribling, Contributing Correspondent
An unnamed buyer has acquired the 376-room Laguna Cliffs Marriott Resort & Spa, which sits on a 12-acre bluff overlooking the Pacific Ocean in Orange County, Calif., according to the broker involved in the deal, Jones Lang LaSalle Hotels. The buyer was an institutional client of Cornerstone Real Estate Advisers.
Though the sales price wasn't specified, Irvine, Calif.-based Atlas Hospitality Group, a hotel investment specialist that was not involved in the deal, estimated that the property fetched about $170 million, or about $452,000 per room. That price would put the Laguna Cliffs sale in the same league as the Ritz-Carlton sale in Pasadena earlier this week, as reported by CPN. That property, which has 392 rooms, also sold for about $170 million.
"There's going to be a lot of investor interest in a property like this, which is virtually impossible to replace," Alan Reay, president of Atlas Hospitality, told CPN this morning. Indeed, according to Jones Lang LaSalle, over 20 suitors bid for the Laguna Cliffs property (pictured), both domestic and overseas investors.
Overall, however, the velocity of hotel investment sales in California is down, according to Reay. The number of hotel sales in the first six months of 2007 was down 8 percent compared with the same period in 2006, and there was a 34 percent decrease in total dollar volume of hotel sales from the first half of 2006 to the first half of 2007.
"There are a number of reasons for the slowdown," said Reay. "In the first place, it's slow relative to 2006, which was a record-breaking year. I don't think we're going to see a year like that again for hotel investment sales anytime soon."
Also, he added, the credit crunch that began this summer has slowed sales down. "And there's the fact that potential sellers are on the sidelines right now," he said. "They're getting good cash flows from their properties, so they're asking themselves, why sell now?"
By: Dees Stribling, Contributing Correspondent
An unnamed buyer has acquired the 376-room Laguna Cliffs Marriott Resort & Spa, which sits on a 12-acre bluff overlooking the Pacific Ocean in Orange County, Calif., according to the broker involved in the deal, Jones Lang LaSalle Hotels. The buyer was an institutional client of Cornerstone Real Estate Advisers. Though the sales price wasn't specified, Irvine, Calif.-based Atlas Hospitality Group, a hotel investment specialist that was not involved in the deal, estimated that the property fetched about $170 million, or about $452,000 per room. That price would put the Laguna Cliffs sale in the same league as the Ritz-Carlton sale in Pasadena earlier this week, as reported by CPN. That property, which has 392 rooms, also sold for about $170 million.
"There's going to be a lot of investor interest in a property like this, which is virtually impossible to replace," Alan Reay, president of Atlas Hospitality, told CPN this morning. Indeed, according to Jones Lang LaSalle, over 20 suitors bid for the Laguna Cliffs property (pictured), both domestic and overseas investors.
Overall, however, the velocity of hotel investment sales in California is down, according to Reay. The number of hotel sales in the first six months of 2007 was down 8 percent compared with the same period in 2006, and there was a 34 percent decrease in total dollar volume of hotel sales from the first half of 2006 to the first half of 2007.
"There are a number of reasons for the slowdown," said Reay. "In the first place, it's slow relative to 2006, which was a record-breaking year. I don't think we're going to see a year like that again for hotel investment sales anytime soon."
Also, he added, the credit crunch that began this summer has slowed sales down. "And there's the fact that potential sellers are on the sidelines right now," he said. "They're getting good cash flows from their properties, so they're asking themselves, why sell now?"
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