The plan is to invest upward of $60 million to renovate theproperty and all of its guest rooms and then sell off theindividual rooms to investors who may chose to put the rooms backinto the hotel rental pool when not using them. As the firstcondominium-hotel to operate in the Monterey Peninsula, LXRpresident Russell Flicker says the property "will meet a strongmarket for buyers."The guest rooms--housed in a series of attachedand detached townhomes--will be ready for use in early 2008,shortly after the ranch's golf course is refurbished. The unitsrange in size from 800 sf to 1,400 sf. Pricing starts at $880,000for the smallest units, which is just over $1,000 per sf.Flickertells GlobeSt.com the gross sell-out value of the guest roomslikely will come in between $150 million and $175 million. Salesbegan today. Buyers are required to go straight to hard contract,he says. Real estate sales and marketing will be handled bySotheby's International Reality. He expects the rooms to be soldout long before the renovation is complete.

The guest rooms and exterior landscaping are being redesigned byarchitect Peter Gumpel. In addition to golf, amenities will includea tennis club, fitness center and three restaurants. Servicesinclude in-room dining, daily housekeeping services, eveningturndown, garment care, in-suite spa services and a concierge.

Carmel Valley Ranch was acquired by Blackstone affiliates aspart of their acquisition of the Wyndham Portfolio, which was takenprivate via the transaction about 18 months ago. The affiliatesalso acquired the Boca Resort portfolio, several hotels acquiredfrom Meristar and other one-off acquisitions and consolidated themunder the LXR brand.