Friday, May 19, 2006


San Diego Area Hotel Market Heats Up For Timeshare Real Estate

The San Diego hotel market is bustling with activity as the Embassy Suites Hotel in La Jolla sells for $100 million. Hotel REIT Sunstone Hotel Investors Inc. acquired the property, adding to its 62-hotel portfolio.

Alan X. Reay, president of Costa Mesa-based Atlas Hospitality Group, tells that because of increased tourism and an upswing in the business sector, competition for hotel property to turn into timeshare real estate is stiff. “The asset is a great buy for Sunstone,” he says. “La Jolla is a hard market to get into, even at the $100 million pric

Other recent hospitality deals include the sale of the 68-room StayBridge Suites Hotel to Trendwest Resorts Inc, a timeshare company. Financial considerations of the sale were not available, but Trendwest says the hotel will be converted into a timeshare property.

The 68-room hotel opened in 2004 and was sold by an affiliate of Shapery Enterprises. Shapery will maintain a presence in the area however, with plans to build a 40-story high rise condominium on what is now the hotel’s parking lot. Once complete, the two properties will share parking and amenities.

Neptune Hospitality Advisors arranged the sale of the building, representing one of two deals involving Neptune and Cendant, says Neptune president Michael Armstrong. The real estate investment bank also completed financing for the Hotel Prava for Cendant in 2005. The StayBridge acquisition comes from increased demand for timeshare units, Armstrong notes.

The StayBridge is a 78-year old building, formerly the Riviera Apartments/Hotel. It was renovated and converted to the StayBridge in 2003, keeping its original façade.

Earlier this month, reported that Neptune arranged a $25 million rehabbing deal for the Radisson Hotel Harbor in the Marina/Little Italy quarter of San Diego. The hotel stands 23 stories and is comprised of 333 rooms. Neptune also recently arranged $30 million in refinancing for two Hansji hotels in Costa Mesa.

The heated hotel activity is not exclusive to San Diego County, however. The Marriott Ventura Beach, located one mile north of Los Angeles, was sold for $34 million to Integrated Capital. The 286-room hotel was recently renovated into timeshare real estate and consists of 9,000-sf of meeting space and amenities.

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