San Diego, CA

San Diego records biggest hotel sale so far this year: $165M

Published

2 years ago

July 24, 2024

San Diego records biggest hotel sale so far this year: 5M

In what is the single biggest hotel sale so far this year, the 394-room Hilton La Jolla Torrey Pines resort has been acquired for $165 million by a Los Angeles-based investment firm that owns no other hotels in San Diego.

JRK Property Holdings, a real estate company that focuses largely on multi-family housing, was drawn to San Diego because of its stature as a lucrative hospitality market. But the real draw was the Hilton property, given its highly desirable location near the coast, said executive Shaan Bhatia.

It also helped that JRK had $350 million in investor money still sitting in a separate hospitality fund waiting to be spent.

“The Hilton was on the market, and we’d been hunting,” said Bhatia, who is head of hotel investment for JRK. “San Diego is in our view one of the major growth markets, and there’s a very strong life sciences corridor next to this hotel that makes this a very strong long-term bet to make. It’s also in a sub-market where there’s no new supply coming in.”

While the hotel’s last major renovation was a decade ago, there have since been “patchwork” refreshes, Bhatia said.

The hotel, with rooms overlooking the Torrey Pines Golf Course and Pacific Ocean, continues to do well financially, but JRK still plans to eventually invest $30 million in property upgrades, although those specific plans have yet to be finalized, Bhatia said.

“Over time, the property will need some level of upgrade, particularly the rooms,” he conceded. “But the property still performs extremely well and outperforms almost all of the local competitors in the aggregate because of its location and brand. We’re working through our plan right now but over time there should be a relatively comprehensive renovation.”

Selling the hotel was Braemer Hotels and Resorts, which noted in a news release that the sale enabled it to pay off the last of its remaining debt maturities in 2024. JRK will not own the resort property itself as the Hilton Hotel sits on city-owned land. There are 63 years remaining on the hotel’s lease with the city, Bhatia said.

While JRK used a portion of its hospitality fund to help finance the Hilton purchase, a loan was still needed, Bhatia said. High interest rates have been a key factor fueling a downturn in hotel sales statewide. Bhatia, however, pointed out that his firm was able take advantage of more favorable loans via the commercial mortgage-backed security market. In the case of the Hilton acquisition, the company put in one-third equity and took out a loan on the balance, Bhatia said.

With the purchase of the La Jolla hotel, JRK will now own a total of 1,500 hotel rooms, including the Ace Hotel in Palm Springs, the Oceana Santa Monica, five properties in south Austin, and two in San Juan, Puerto Rico, Bhatia said.

Emmy Hise, senior director of Hospitality Analytics for the commercial real estate firm CoStar, pointed out that while the Hilton Torrey Pines is among the priciest sales in the Western U.S., the price paid per room is less than comparable sales in the area.

“The Hilton is the highest-priced hotel transaction in the San Diego market since 2022,” she said, “but the price per key (room) is lower than similar hotel types that traded in the area in the past five years. This is likely due to the needed capital expenditures or required property improvement plans.”

The 35-year-old Torrey Pines property, which at one time was owned by Hilton, last changed hands in 2013 when Braemar purchased it from Ashford Hospitality Trust as part of an eight-hotel portfolio. Ashford serves as the adviser to both the Hospitality Trust and Braemar. The last time the hotel was sold by itself was in 2003 when it commanded a price of $106.5 million.

“When you look at the price they paid per room — $418,000 — that’s still below replacement cost, and it would be extremely difficult to replace this hotel, because of its location and the fact you have to deal with the Coastal Commission,” said Alan Reay, president of Atlas Hospitality Group. “So I think it’s a very good acquisition for the buyer. San Diego is still one of the best performing markets in California.”

Nonetheless, hotel sales in California, Reay said, remain down compared to a year ago, but the decline has more to do with a disconnect between what hotel owners think their properties should sell for and the dollar figure that buyers are willing to pay.

Originally Published: July 24, 2024 at 3:47 p.m.

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San Diego, CA

The Best Things to Do in San Diego: May 2026 | San Diego Magazine

Published

3 hours ago

April 20, 2026

Press Room

The Best Things to Do in San Diego: May 2026 | San Diego Magazine

When we think of May, we think of Mother’s Day, blooming flowers, sunny skies, and lots of fun, seasonal events in the city. This month, locals can dine on the creations of James Beard Award-Winning Chefs at Rancho Bernardo Inn, or take advantage of berry season at the annual Vista Strawberry Festival. Theatre lovers can enjoy a showing of Kim’s Convenience at The Old Globe, while the San Diego Natural History Museum invites art enthusiasts to view its latest marine-themed exhibit. Grab your tickets and crack open that planner. Here are all the best things to do in San Diego this month:

Concerts & Festivals | Theater & Art Exhibits | More Fun Things to Do

Concerts & Festivals in San Diego This Month

29

Louisiana legend Juvenile, enhances by the live instrumentation of The 400 Degreez Band, will perform career hits and his newest album, Boiling Point, at House of Blues San Diego.

Photo Credit: Dahlia Katz

Theater & Art Exhibits in San Diego This Month

5/5–6/1

Turning the spotlight on contemporary LGBTQ artists, the inaugural ArtSpectrum 2026 will showcase both the grand and intimate scale of contemporary painters, photographers, and mixed media artists at Village Arts Outreach in Balboa Park.

12–24

The only ordinary element of the San Diego International Fringe Festival is the constant thrill of the extraordinary. Discover a plethora of innovative performances at venues from Pacific Beach to Baja.

5/15–6/14

A Korean-Canadian family balances tradition and assimilation from their Toronto storefront in Ins Choi’s comforting satire Kim’s Convenience, making its local premier at The Old Globe.

5/22–2/2027

Ocean debris will receive a new beginning at the San Diego Natural History Museum. Using repurposed pollution, Washed Ashore: Art to Save the Sea depicts creatively sculpted marine life.

More Fun Things to Do in San Diego This Month

4/30–5/3

Enjoy fine dining at its finest from a lineup of gastronomic titans during 54 Hours with James Beard Award-Winning Chefs. Savor elegant meals, masterclasses, tastings, and more at Rancho Bernardo Inn.

2

Unlimited bites, regional craft beers, and animal observations are on the menu for San Diego Zoo Food, Wine & Brew (with live music), a culinary evening in support of the San Diego Wildlife Alliance.

7

Spend An Evening with David Sedaris, humorist, essayist, and best-selling author. Never afraid to point the pen at himself, Sedaris will share old favorites and works in progress in the classic satirical style he’s known for at Jacobs Music Center.

15–17

Say cheese! And toast to the Cheese & Libation Expo. Explore three days of all-you-can eat and drink fare at BRICK, along with boutique shopping and bountiful pairings.

PARTNER CONTENT

10 Years In, Puffer and Malarkey Are Just Getting Started

Elevating an Icon: Inside the La Jolla Beach & Tennis Clu…

16

Stroll the private grounds of several luxurious homes, accompanied by live music, tabletop designs, and outdoor artistry, during the Secret Garden Tour, La Jolla Historical Society‘s flora and fauna fundraiser.

24

Vista recalls its days as a strawberry-producing superpower through its free Strawberry Festival. Wear your berry best fit, watch film screenings, and enter contests for shortcake, pie, and sundae indulging.

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San Diego, CA

City considering cutting funding to resource center for those experiencing homelessness

Published

16 hours ago

April 20, 2026

Press Room

City considering cutting funding to resource center for those experiencing homelessness

Last week Mayor Todd Gloria released the budget proposal for the 2027 fiscal budget. Protected homeless services is among his top priorities mentioned in the proposal. However, some of the reductions he’s proposing could impact thousands of San Diegans experiencing homelessness.

Located on 17^th and K Street, the Neil Good Day Center offers an array of services to nearly seven thousand people experiencing homelessness. The services include giving them a place to shower and do laundry, and connecting them to a case manager, among others.

“These are critical services that are helping people off the streets, but really better their lives and their health and their employment situation as well,” Deacon Vargas with Father Joe’s Villages said.

Deacon Jim Vargas heads Father Joe’s Villages, which runs the center. He said through their prevention and diversion strategies, they’ve managed to keep nearly one thousand individuals from falling into homelessness.

“So by helping them pay rent, or helping them with their utilities, or helping them to reunite with family,” Vargas said.

Right now, the city allocates at least $850,000 per year to the Neil Good Day Center, according to Vargas.

But the future and funding for these services are in limbo because of Mayor Todd Gloria’s proposed budget cuts.

“The impact to those whom we’ve been serving the Daily Center would be very severe,” Deacon Vargas said.

In a statement to NBC 7, Mayor Todd Gloria said in part, “We must find more efficient and cost-effective ways to address this crisis and prioritize funding for programs that provide shelter beds and maximize resources to programs that place people into permanent housing.”

Since it’s still at a proposal stage, Deacon Vargas said it’s unclear how the city will decide to move forward.

However, Deacon Vargas said services would be significantly reduced because they would be forced to operate solely on a budget of about half a million dollars they receive from philanthropy.

“The hours would be cut. Some days would be cut. We would have showers that might be impacted because they’re given seven days a week and we’d close two days a week, then the showers would be five days a week, the case management,” Deacon Vargas said.

Deacon Vargas is certain of one thing.

He would like to continue offering services at the Day Center, even if the city goes through with the funding cuts.

“As we work with individuals at the Day Center and at Father Joe’s Villages, the community becomes healthier as a result of it,” Deacon Vargas said.

The budget also recommends additional cuts to homeless services, but does not give specifics as to where those cuts would be.

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