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Long Time Owners, Russ and Carole Kiessig, Sell the
Sycamore Mineral Springs Resort and Avila Valley Inn
for $25 million
San Luis Obispo, CA. April 7, 2003: The sale of these two properties was completed and recorded on April 4, 2003. The Sellers were Russ and Carole Kiessig and the Buyer was Sycamore Mineral Springs, LLC, an entity owned and controlled by John E. King. The sale price was $25 million dollars.
 
Sycamore Mineral Springs Resort includes 116 acres of oak and sycamore tree wooded land. The property has been owned and developed by Mr. and Mrs. Kiessig since their purchase of this, then defunct, historical site in 1976, when they created a unique hot springs, hot tub rental and lodging operation that became a favorite of local residents, out-of-town guests, as well as the students at nearby Cal Poly University in San Luis Obispo, California. Today the property includes 74 units of lodging, all with in-room, full-size spas, a spa building, 20 outdoor redwood hot tubs, an outdoor thermally-heated fresh water swimming pool, an adjacent communal hot water spa pool, The Gardens of Avila restaurant and lounge, meeting space, and entitlements for completion of an additional 22 guest cottages. The additional units are located in an area known as the �meadows� which is connected to the property via a pedestrian bridge over Avila Beach Drive. The property also includes two operational geothermal wells and two freshwater wells.

Avila Valley Inn includes 15 acres of land, a geothermally-heated fresh water pool, a large recreational slide, a geothermal hot springs soaking 


Sycamore Mineral Springs Resort
1215 Avila Beach Drive
San Luis Obispo, California
In 1886, two men started drilling for oil in what is now called Avila Valley. Instead of the oil they had anticipated, sulphur-based mineral water sprang up. Naturally hot, this white sulphur spring water proved to have a therapeutic effect and the "Oil Wells" (as Sycamore was then named) rapidly became a popular spa/resort and location for social gatherings in San Luis Obispo County.

In the early 1900s, the resort was called San Luis Hot Sulphur Springs. W.C. Fields visited here frequently, as did many others who stayed at Hearst Castle. The Pacific
Coast Railway stopped right across the street, enabling guests from Los Angeles to San Francisco to enjoy a coastal train ride while traveling to the resort. A popular
"getaway" special was then a two-day stay at the hot springs combined with the train ride, for a total of $19.00.

In the mid-1930s, new owners restoring the facility, named it Sycamore Mineral Springs. They emphasized its use as a therapeutic center staffed by doctors and nurses. People visited Sycamore Mineral Springs for mineral water treatments to "cure" their aches and pains, arthritis and other ailments. The mid-1970s saw another shift in focus, and Sycamore Mineral Springs once again, became a spa
resort. New owners rebuilt the facility to host the many tourists traveling up and down the coast.

pool, spaces for 68 recreational vehicles, and camp sites. The improvements on the property include a large multi-purpose building that houses a small informal restaurant, several massage rooms, electronic game room, and men�s and women�s changing rooms.

From Hot Tubs to Luxury Resort

Russ and Carol Kiessig have taken a relatively modest retail hot tub operation and quietly developed it into an internationally known destination resort. The resort has grown in size and stature in the resort and spa business by phasing in the lodging component in over the last 20+ years.  Currently the property offers private hot tubs in each of its 74 rooms and superb cuisine at the highly acclaimed Gardens of Avila Restaurant. Recent events that included the terrorist attacks on 9-11-2001, an economic recession in the U.S. and particularly California, and the Iraq war have not diminished the business levels at the Resort. According to Russ Kiessig, �Sycamore is a place that many people return to for quiet, relaxation, and mostly because of a hospitable staff of devoted employees�. Over the last several years, he has been right. It is a �drive-tp destination� that has wide appeal from both Northern and Southern California markets, and interestingly, a diverse international segment particularly from Asia and western Europe.

John King, and King Ventures, is planning on completing the planned expansion of the resort that includes an additional 22 units in the �meadow� area. To take the property to a different level, Mr. King has retained the services of two Spa industry veterans, Deborah Morris Coryell and Jona Liebrecht, both formerly of the Canyon Ranch Spa and Resort in Tucson, AZ. Mr. King believes the Resort can expand and broaden its appeal by capitalizing on national consumer trends that include more health and wellness, stress reduction, and dietary concerns. A specific example is the planning of a program at Sycamore under the direction of world renowned Dr. Andrew Weill, a Harvard MD, and author of �Spontaneous Healing�. Ms. Coryell�s celebrated healthy lifestyle teachings will be a significant factor.
Guests will be involved in a weeklong program directed by Dr. Weill and his associates. John King said, �We fully expect to be able to build upon what Russ and Carol have started here in the community�

Bob Eaton, executive managing director of Colliers International Hotels � San Francisco, who acted as advisor to the seller, said, �In the Sycamore transaction, the significant value being recognized results from an existing real estate and business asset with a track record of quality service and a new owner with the vision to recognize the uplift in value created by an emerging central coast (of California) lodging sector, and lodging, consumer, and market trends.� Colliers operates Hotel and Resort Investment Advisory services in their offices around the world.


 
Contact:

Bob Eaton
Colliers International Hotels
Two Embarcadero Center, Suite 1000
San Francisco, CA 94111
(415) 788-3102



 
Also See: Suzanne Ng Named Spa Director at Mandarin Oriental, New York
Starwood Appoints Elaine Fenard to Vice President, Spa Development & Operations / April 2002


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