San Diego County Hotel Market Continues Upswing Prompting Investment

March 9, 2011 - PRLog -- CORONADO, CA – As the owners of the Manchester Grand Hyatt in San Diego reach an agreement to sell the county’s largest hotel to Host Hotels & Resorts for $570 million, experts predict other hotels and investors will soon follow suit.

The deal comes on the heels of The Blackstone Group’s recent investment in the famous Hotel del Coronado. As a part of the transaction, Blackstone, a global investment firm, acquired a 60 percent stake in the hotel while the other 40 percent is owned by Strategic Hotels & Resorts Inc. and KSL Resorts with the latter managing the property.

Although the luxury hotel industry was among the sectors most affected by the recession, experts note it is recovering faster than most. According to Smith Travel Research, San Diego hotels experienced a 6.1 percent increase in occupancy over 2009 bringing the rate to 66.7 percent. Additionally, the amount charged for the daily, average room rate saw a 2.4 percent decline while profits per available room rose 3.5 percent.

Individuals are entering the market as well as word spreads that whole-ownership opportunities with revenue potential are available at certain luxury resorts. For example, Beach Village at The Hotel del Coronado features two and three bedroom beachfront Cottages and Villas which are wholly owned contrary to the popular belief that the properties are timeshares.

In accordance with the contract with the Del, owners may enjoy their properties up to 90 days a year while the Del acts as their property manager the rest of the time renting out the rooms to guests with owners sharing in the rental profit.

“It’s a very unique investment opportunity,” said Ruth Ann Fisher, broker for Del Realty – the company which handles the buying selling of the 35 Cottages and Villas. “Not only do owners get to enjoy these exclusive properties which include access to all of the hotel’s amenities, but they also split the rental revenue which can be up to $6,000 a night during the peak seasons.”

The good news continues for the industry following the recent report released by Colliers International PKF Hospitality Research which forecasts a 5.8 percent increase in daily room rates for 2011.

Del Realty is a full-service real estate company specializing in Coronado, Beach Village at The Hotel Del and surrounding San Diego communities. For more information call 619-437-1888 or visit www.thedelrealtygroup.com

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Located at the historic Hotel del Coronado, Del Realty is
a full service real estate office specializing in sales, leasing, and vacation rentals in Coronado and the surrounding San Diego communities.