EVP John Strauss of Jones Lang LaSalle, which brokered the deal,declined to discuss the price of the hotel, which sits on a bluffoverlooking the Pacific Ocean. But Strauss tells GlobeSt.com thatthe Laguna Cliffs generated intense competition among prospectivebuyers and that the new owner, an institutional client ofCornerstone Real Estate Advisers, plans to invest considerably inupgrading and renovating the property.

Besides its 376 guest rooms with ocean views, the propertyfeatures 50,000 sf of function space, a 14,000-sf spa, a 2,500-sffitness center, two heated outdoor pools and a lighted tenniscourt. The hotel was renovated only five or six years ago, butStrauss tells GlobeSt.com that the new owner sees the potential tobe even more competitive in the South Orange County coastal marketvia further improvements.

Market sources indicate that Cornerstone acquired the propertyfrom Prudential Real Estate Investors, which bought it for $82.4million in September of 2004. The dramatic price increase in onlythree years underscores how rare and how much in demand coastalhotels are in Southern California, where lack of land and stringentdevelopment regulations all but prohibit the building of newproperties.