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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:


Lori Weisberg, Staff Writer
San Diego Union-Tribune
350 Camino de la Reina
San Diego, CA  92102

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