Dec. 23–San Diego's only W hotel is no more, having converted this month to a Marriott-branded Renaissance following a decision by the owners to make a change in the management and name.
A presence in downtown San Diego since it opened in December of 2002, the tony 258-room highrise was until this month part of the Starwood Hotels and Resorts portfolio. Its grand opening attracted a star-studded crowd of Hollywood celebs, sports figures and local politicians, and for years was best known for its hip rooftop bar, the Beach, which featured a heated sand-covered floor.
Scott Hermes, Starwood's area managing director for the Southern California region, did not offer a reason for the change, saying only that the lodging company's management agreement for the property at State and B streets was coming to an end and that Starwood and the ownership "mutually agreed" to part ways.
While the hotel will now be a Marriott, its management will be overseen by HEI Hotels & Resorts, an independent management company that works with multiple hotel brands, Hermes said.
"The W brand has been an innovator since its inception and W San Diego was no exception," Hermes added. "We had discussed extensions with the owners earlier in the year but at the end of the day we both said, let's part and move in a different direction."
The W was sold in 2011 to the Rockpoint Group, a Boston-based real estate private equity firm, for $56 million, a year after it had fallen into foreclosure.
Rockpoint would not comment on why it opted to move away from the W family of hotels but said Wednesday that the combination of a strong San Diego lodging market and a change to the upscale Renaissance brand will help make it a stronger performing property.
While the hotel underwent a $5 million makeover in 2012, another major revamp is planned, Rockpoint said.
Hotel analyst Alan Reay said he was puzzled why the ownership would opt to move away from the iconic W brand, particularly in light of its appeal to younger guests.
"They obviously felt Starwood wasn't generating enough business to this hotel and swapped to Marriott," said Reay, president of Orange County-based Atlas Hospitality Group. "With all the talk about brands focusing on millennials, it's somewhat surprising you'd go from a W to a Renaissance because in my mind, a W is more positioned for younger, millennial travelers than the Renaissance, which is focused on an older clientele."
Although Marriott and Starwood are competitors, Marriott has announce plans to acquire Starwood Hotels and Resorts.
Hermes said he's hopeful that a W hotel will one day return to San Diego.
"There's not a project in the works today," he said, " but it's not a question of if but when W will return to the San Diego market."
[email protected] (619) 293-2251 Twitter: @loriweisberg
