Hotel Online 
News for the Hospitality Executive


 


Foreclosed 98-room Inn at Morro Bay in San Luis Obispo, California
Acquired by Pacifica Host Hotels for $9 million


By Lori Weisberg, The San Diego Union-Tribune
April 7, 2011

San Diego-based Pacifica Host Hotels has added yet another coastal property to its growing portfolio -- the 98-room Inn at Morro Bay, which fell into foreclosure nearly a year ago.

The aging Central Coast property, built in 1960 and burdened with nearly $14 million in debt, sold for roughly $9 million, said Michael de Jesus, vice president of sales and marketing for Pacifica.

While the hotel is in need of extensive renovation, its prime waterfront location made it an attractive purchase, drawing more than 20 offers, according to Alan Reay, founder of Atlas Hospitality Group, which brokered the sale.

The hotel's lender, Wells Fargo Bank, had foreclosed on the property last August, he said. Hotelier and developer John King had purchased the hotel in 1993 and in recent years had refinanced, amassing more debt on the property, noted Reay.

Although roughly 40 percent of the rooms were renovated in 2005, as much as $2.5 million needs to be spent on upgrading the rooms, restaurant and bar, Reay estimated.

/ Courtesy of Atlas Hospitality

The 98-room Inn at Morro Bay, which fell into foreclosure
 last August, recently sold for roughly $9 million
.


For the rest of the story please visit:

http://www.signonsandiego.com/news/2011/apr/06/san-diego-hotel-company-purchases-foreclosed-hotel/


Contact:

Lori Weisberg, Staff Writer
San Diego Union-Tribune
350 Camino de la Reina
San Diego, CA  92102
619-293-2251
lori.weisberg@uniontrib.com


Receive Your Hospitality Industry Headlines via Email for Free! Subscribe Here  

To Learn More About Your News Being Published on Hotel-Online Inquire Here

Also See: Hotel Room Discounting Appears to be Coming to an End, Particularly for Upper End Hotels / Lori Weisberg / March 2011

Want to Run a Hotel? Take Calculus / Lori Weisberg / March 2011

Pacifica Host Hotels Acquires the 135-room Aloft Ontario-Rancho Cucamonga for Roughly $8 million, Property was the Debut of Aloft for Starwood / Lori Weisberg / February 2011

Manchester Grand Hyatt San Diego to be Sold to Host Hotels & Resorts Inc. for $570 million / February 2011

Following Two Years of Deep Discounting, U.S. Hotel Outlook Improving / Lori Weisberg / January 2011

San Diego's Hotel Occupancies May be on the Rise but so are Foreclosures with a 433% Increase Over 2009 Bank Owned Properties / January 2011

Strategic Hotels and Resorts Granted Extension to Retire More than $600 million of Debt on San Diego's Hotel del Coronado / January 2011

Bankrupt 5th Avenue Partners LLC, Owners of the Sè San Diego Hotel Along with Adjacent Building Housing the House of Blues, Could be Put up for Sale; Estimates Claim Could go for $50 million, Significantly Less than the $150 million Development Cost /January 2011

San Diego County Hotels Looking to a Healthier New Year as RevPAR Rose by 4.2% and Occupancy 5.4% in 2010, Gains Expected to Continue / January 2011

Three San Diego Hotel Properties that Were Returned to Lender by Sunstone Hotel Investors Now Up for Sale / December 2010

San Diego Hotel Performance May Mirror the Rest of Nation Says Starwood Hotels and Resorts CEO Frits van Paasschen / October 2010

San Diego Leads California with Hotels in Distress; Numbers Surge 160% Over Same Period a Year Ago / October 2010

Questions Surround Why the City of San Diego Has Permitted the Swanky SE San Diego Hotel to Continue Operating Without a Valid Certificate of Occupancy / September 2010

San Diego's Manchester Grand Hyatt Deal with Sunstone Hotel Investors Goes Sour / September 2010

Skin Care Concierges Protect Hotel Sunbathers - The Newest in Amenities? / August 2010

Traveler Preferences are Changing: Upscale San Diego Hoteliers are Increasingly Becoming Pet Friendly Offering Pet Amenities From Surfing Lessons to Pet Psychic Sessions / August 2010

Former Owner of San Diego's W Hotel, Sunstone Hotel Investors, Wants to Acquire Manchester Grand Hyatt / August 2010

San Diego's Downtown W Hotel Now Owned by Lender / July 2010

During Downturn San Diego Hotel Owners Face a Delicate Balancing Act in Calculating When and How Much to Invest in Restorations / April 2010


To search Hotel Online data base of News and Trends Go to Hotel.OnlineSearch
Home | Welcome| Hospitality News
Industry Resources
Please contact Hotel.Online with your comments and suggestions.