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

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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.”

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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.

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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.”

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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.

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San Diego, CA

More Thoughts on ‘Yes on A’

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More Thoughts on ‘Yes on A’


By Dave Rice

Is Measure A going to affect a significant number of properties? Is it going to affect affordable housing in any meaningful way? Come now, let’s not be dense – this hits a handful of rich people who can absolutely afford to drop $10K in the city coffers if they’re leaving a vacation home vacant on purpose – let’s say that’s their civic contribution that would be realized in other ways if they actually lived, worked, and shopped here full-time.

Or it hits STVR hosts, who can either factor the cost into their business model or give it up if margins are really that thin (maybe not everyone needs to fancy themselves an amateur hotelier). But let’s not kid ourselves and believe the kind of housing this will free up will be plentiful or affordable.

In the exceedingly rare instances where someone might be eligible for an exemption, will it be too hard to apply for? That’s something we can argue and refine but that’s the bathwater, or just the little bit of it that splashes out of the tub, not the baby. An argument that the whole proposal is DOA because military members are too stupid to file for an exemption is either dismissive of or telling tales out of school about what we really think of military intelligence.

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Poor, poor grandma who needs a home near her doctor? If she’s really poor why does she have multiple houses, and if she’s not does this really affect her? I live in a neighborhood where “aren’t you afraid you’re going to get shot?” is the first thing outsiders ask me about where I’m from, and if Grandma has owned her mostly-unoccupied vacation house for any significant time I probably pay a lot more property tax than she does. You couldn’t trip over the limbo bar to gain my sympathy, it’s buried a few feet deep.

This is a tiny nod toward taxing the rich, but that’s all. It’s not significant or meaningful, it won’t do a lot, most of the housing stock in question even if returned to actual residents won’t make a dent in the astronomical cost of living in or anywhere near this city. But it’s a tiny step in the right direction – and watching how hysterical the moneyed class is about the rest of us asking for even the tiniest drop in the goddamned bucket we’re trying to fill without their help is telling.



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Annual Rock ’n’ Roll races bring 30,000 runners to San Diego streets

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Annual Rock ’n’ Roll races bring 30,000 runners to San Diego streets




Annual Rock ’n’ Roll races bring 30,000 runners to San Diego streets – NBC 7 San Diego



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Dining Out — series Part 1: A look at the evolution of La Jolla’s restaurant scene

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Dining Out — series Part 1: A look at the evolution of La Jolla’s restaurant scene


This is the first installment in a series of stories on the history of dining out in La Jolla, how it’s changed and how it continues to evolve.

It’s hard to imagine La Jolla without its restaurants, from the lines stretching down the block at The Taco Stand to the iconic views at George’s at the Cove.

But the way La Jollans eat and where has changed dramatically since the area’s founding in the 1800s.

In this first part of the new month-long series “Dining Out,” the La Jolla Light looks at local restaurants from the 1880s (when La Jolla was first developed and settled) to the early 1920s.

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“La Jolla had very few people at that time,” according to local historian Carol Olten. “There weren’t a lot of restaurants, as far as we know.”

Olten said she gets information about La Jolla’s earliest days from the diaries of local pioneer Anson Mills.

“He kept track of where he went and what he did … but he did a lot of home cooking,” she said. “So when they went to a restaurant for dinner, it was a big occasion. It was something people mainly did on holidays or … a social occasion.”

One restaurant Mills would go to — believed to be one of the first in La Jolla — was Montezuma Cottage. Olten said it is believed to have opened in 1895 near the intersection of Prospect and Jenner streets.

Mills described the restaurant as a popular eating and gathering spot for locals and tourists, Olten said. He wrote an entry about a Thanksgiving dinner there with about 60 people.

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Montezuma Cottage later became known as the Seaside Inn and Ocean View restaurant. It was torn down in 1931.

Culturally, eating at a restaurant was a more formal occasion at the time, Olten said.

“You didn’t go to a restaurant just to hang out with friends like you would today. It was purposeful then,” she said.

Around 1900, a restaurant known as the White Rabbit opened near the corner of Girard Avenue and Prospect Street. In addition to a rooftop garden, it featured a tea room, joining a national trend.

“Tea rooms went with the suffragette movement because in those days, [women] didn’t have a place to gather without an escort, so tea rooms started opening in hotels and women could go there and sit down and have a social tea or lunch,” Olten said. “La Jolla got in on the tail end of that thanks to [Green Dragon Colony founder] Anna Held and [La Jolla philanthropist] Ellen Browning Scripps.”

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One of them, called The Cricket, opened in the early 1900s with white tablecloths. Olten said it was near what it is now Eddie V’s restaurant.

“It was originally part of the Green Dragon Colony … and was sold to a British woman named Daisy Mitchell,” she said. “It stayed a tea room for many years, and she kept a guest book that was decorated with reds and greens and had a medieval theme. So it was very British.”

Joining a trend toward more upscale dining, one of La Jolla’s “most well-established and well-known restaurants” opened in 1912 at 1227 Prospect St. The Brown Bear had “stylish, fashionable service and a menu to please the gods,” Olten said.

A house specialty was Welsh rabbit served in a silver chafing dish. The restaurant was in operation until 1941.

Several restaurants opened around 1915, about the same time as the Panama-California Exposition, a world’s fair-type event held in 1915-16 that brought 3.7 million people to San Diego.

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The Panama-California Exposition in San Diego’s Balboa Park in 1915-16 coincided with several restaurant openings in La Jolla. (San Diego History Center)

One of La Jolla’s new restaurants, the Spindrift Inn, opened in 1916 and was considered a “last stop” out of town.

“Most restaurants at that time were located in the immediate Village area,” Olten said. “The one that was astray would have been the Spindrift Inn [in La Jolla Shores]. This was in the very early days of automobiles, so not very many people had cars, but those that did would … drive their cars and the last stop before you got out of town was Spindrift Inn.”

The Spindrift Inn later became The Marine Room, which still stands.

Olten said the restaurant was operated by the Hannay family for about 20 years. Their “rambunctious” fox terrier, Jiggs, would roam the dining room.

Another Expo-era restaurant was the Dining Car, which operated in an old trolley car parked near Goldfish Point. Dinner was $2 per person. It burned down on Halloween night in 1923.

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Next installment: With new hotels being built in La Jolla in the 1920s came new hotel restaurants. But later, World War II would have an impact on La Jollans and San Diegans in general and on where and how they ate. ♦



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