The Monterey portfolio, offered unencumbered by a management contract, represents a significant percentage of the total available oceanfront rooms in the Monterey hotel market, which according to Jones Lang LaSalle is supported primarily by leisure clientele from the San Francisco Bay area, the Los Angeles Basin, and the Northeastern United States.

"Given its favorable climate, popular recreational attractions, and proximity to prominent feeder markets, Monterey is currently one of the strongest resort hotel destinations in the nation," says LaSalle in announcing the disposition assignment, which also includes a Coastal Hotel Group hotel in Laguna Beach, CA and another in Savannah, GA. The Monterey portfolio includes:

Spindrift Inn --Opened in 1984, this 42-room European-style oceanfront hotel commands the highest rates in the famous Cannery Row district of Monterey.

Monterey Bay Inn -- Jones Lang LaSalle says significant rate upside is possible by renovating and repositioning this 47-room hotel as a more contemporary oceanfront property.

Victorian Inn -- Constructed around a Victorian home, this heavily landscaped 68-room hotel is located two blocks from Cannery Row.

Hotel Pacific -- This 105-room, all-suite property is located adjacent to the Monterey Convention Center in downtown.

Jones Lang LaSalle Hotels' executive vice president Arthur Buser says that thanks to a combination of high land prices and the growth-containment sentiment of local residents, high barriers to entry for new supply exist, resulting in "a rare opportunity to own and operate a high-quality hotel portfolio on the California coast largely insulated from supply growth."

The two other hotels Coastal Hotel Group is having Jones Lang LaSalle market are the Inn At Laguna Beach -- a 70-room oceanfront property constructed in 1990 in the heart of Laguna Beach – and the Marshall House, a recently renovated 68-room hotel that was featured in Clint Eastwood's film "Midnight In The Garden of Good and Evil."

Concludes Buser, "This six-property portfolio will have strong appeal to owner/operators, high-net-worth individuals and opportunity funds."

Instant Insights /

Coastal Hotel Group Looks to Unload Six Properties, Four on the Monterey Coast

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