By Lori
Weisberg, The
San Diego
Union-Tribune
February 16, 2011
Hotel developer Doug Manchester
plans to sell his namesake downtown property, the Manchester Grand Hyatt San Diego, to Host Hotels & Resorts Inc. for
$570 million, a deal that still requires the blessing of the San Diego
Port Commission.
Host, which is the largest lodging real estate investment trust,
already owns the 1,362-room bayfront Marriott that Manchester
originally developed in 1984. He sold his remaining stake in 2008 to
Host, at the time a majority owner,
in a stock deal valued at about $93 million.
If the acquisition goes through, it would be the largest sale since
2006 when Strategic Hotel Capital acquired a 45 percent stake in the
Hotel del Coronado in a deal then valued at $745 million, said Alan
Reay of Atlas Hospitality Group.
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Photo by Nelvin C.
Cepeda - Union-Tribune
The Manchester
Grand Hyatt San Diego's towers have become a prominent feature of the
downtown skyline.
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“This says a lot about what’s happening in the hotel business — that
it’s definitely rebounded and there are buyers for extremely large
transactions,” said Reay, whose company tracks hotel sales in
California. “Buyers are seeing hotels as a great place to invest
because the market is rebounding, even if the price is still below its
replacement cost, and this is an asset that would be very, very
difficult to replace.”
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