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The La Jolla Marriott, Selling for $71 million, Bucks Recent Trend
of Downtown San Diego Hotel Buys


By Lori Weisberg, The San Diego Union-Tribune
July 26, 2011

The 360-room La Jolla Marriott, under the same ownership for nearly two decades, has been sold for just under $71 million to a Connecticut-based private equity firm.

The sale, which translates to $197,000 a room, is one in a string of recent high-profile hotel transactions in San Diego County. Many of them, however, have involved hotels in the downtown area.

The La Jolla Marriott buyer, HEI Hotels and Resorts, had considered downtown San Diego but ultimately felt more comfortable about buying a hotel in the La Jolla area, especially one that caters more to the business traveler, said Russ Urban, senior vice president of acquisitions and development.

The company was concerned, he said, about what it believes is an oversupply of rooms in the downtown area, which saw several new hotels open just as the recession hit. Selling the hotel was Cornerstone Real Estate Advisors, a subsidiary of the Massachusetts Mutual Life Insurance Co.

“We like La Jolla, and we did a lot of research on the industry segments,” he explained. “Telecom and pharmaceuticals are the two predominant industries in that market, so we feel very good about that business sector. We love Marriotts and own several, so this was right up our alley. And in La Jolla, you have the added benefit of the leisure travel component.”

For the rest of the story go to:
http://www.signonsandiego.com/news/2011/jul/25/a-la-jolla-area-hotel-sells-for-nearly-71-million/


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


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