(Mark Your Calendars: RealShare HOTELS 2011, September 15 in New York City).
SAN DIEGO-Norwalk, CT-based HEI Hotels & Resorts has purchased the 360-room San Diego Marriott La Jolla here for an undisclosed amount. The hotel is the ninth acquisition by HEI’s Fund III and is the 41st hotel in the company’s portfolio.
HEI tells GlobeSt.com that “due to contractual reasons with the seller,” it is unable to provide any further pricing information at this time, but rumor has it the number was around $70 million. An unidentified source not involved in the deal tells GlobeSt.com that the seller was Cornerstone Real Estate Advisors.
The hotel is located in the Golden Triangle, La Jolla’s pre-eminent business district, and convenient to local attractions and downtown San Diego, according to a prepared statement. La Jolla is considered one of the best San Diego locations because of its four million square feet of class A office property, R&D space, upscale retail, industrial product, multifamily and hospitality, says the statement.
“As our second San Diego MSA hotel, the La Jolla property fits well with HEI’s core investment program on multiple fronts,” says Steve Mendell, president, acquisitions and development. “We were particularly attracted to this asset by the depth and diversity of the pharmaceutical and telecommunication businesses in La Jolla and the opportunity presented from our comprehensive planned renovation.”
The hotel offers 23 meeting rooms and more than 16,000 square feet of total function space. Additional amenities include four food and beverage outlets, indoor and outdoor swimming pool and whirlpool, and a business center. HEI plans to execute a $20-million renovation beginning in 2012, to include guest rooms, lobby, meeting space, and expanded fitness facilities.
“The Marriott La Jolla transaction was largely the result of our strong relationship with the seller, which we have transacted with several times over the preceding 12 months,” says Anthony Rutledge, chief financial officer. “We are excited about the investment profile of this transaction and expanding our strategic relationships for future transactions with other key investment partners in the near future.”
According to Russ Urban, HEI’s SVP of acquisitions and development, “This is our 12th hotel in the Marriott brand family. HEI looks forward to continued expansion of its Marriott portfolio.”
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