California's Hotel La Jolla, La Jolla Inn and the Mission Valley Marriott Hotels Change Hands for a Total of $123.1 million
Roger Showley | The San Diego Union-Tribune | February 19, 2016 2:48pm
Feb. 18--Hotel La Jolla, La Jolla Inn and the Mission Valley Marriott have changed hands for a total of $123.1 million, according to the CoStar Group.
The commercial real estate research firm identified the new owners but management and physical changes remain to be seen.
The 110-room Hotel La Jolla at 7955 La Jolla Shores Drive sold for $40 million to Irvine-based Khanna Enterprises. The seller, Westport Capital Partners with offices in Los Angeles and Wilton, Conn., had bought the 43-year-old property in 2011 for $30 million.
On hotel industry websites, President and CEO Ravi Khanna said the hotel adds to the company's plan to own and manage "quality-positioned hotels in upscale markets along the West Coast."
He also said, "La Jolla is one of California's jewels and we will make sure the Hotel La Jolla continues to reflect its unparalleled charm."
It followed Khanna's acquisition of the Sheraton Hotel in Agoura Hills last year and Custom Hotel in Los Angeles in 2014.
A spokeswoman for Kimpton Hotels and Restaurants said the chain ceased management of the property about two weeks ago. A new management firm has not been announced.
The previous owner spent about $6 million to complete room upgrades and to overhaul the penthouse restaurant, now known as the Cusp, by adding a lobby, new entryway and outdoor lounge and bar.
The La Jolla Inn, a 23-room property built in 1947 at 1110 Prospect St., sold for $7.1 million to locally based Oceanic Properties. The seller was Anthony Torbali, who said on the hotel website that he had just completed a $1 million upgrade. Charles A. Dunn had sold it to Torbali in 1995.
The buyers could not be reached to discuss future plans.
The Mission Valley Marriott at 8757 Rio San Diego Drive sold for $76 million to Wheelock Street Capital, a real estate investment firm based in Greenwich, Conn. The seller was Marriott's Host Hotels & Resorts, which announced the transaction in a filing with the Securities and Exchange Commission.
Built in 1989, the hotel has 350 rooms in the 16-story tower and hosts weddings, meetings and conferences in its 19 rooms with a total 28,000 square feet. Amenities include the Den gourmet dining room, a fitness center and outdoor pool with waterfall and private cabanas.
In its SEC filing, Marriott said it did not consider the hotel a "core" property to continue holding. The new owners could not be reached for comment on any future plans.