SAN DIEGO—Two Pack Hotel LP, an affiliate of Excel Hotel Group, has acquired the 132-room Comfort Suites San Diego-Miramar and the 75-room Holiday Inn Express San Diego-Mira Mesa from LLJ Ventures for an undisclosed amount. The two hotels are adjacent to each other on 3.72 acres in the Mira Mesa/Scripps Ranch area of Northeast San Diego.
The sale is further evidence of the popularity of select-service hotels among investors in Southern California. As GlobeSt.com reported earlier this week, CBRE Hotels SVP Rod Apodaca told us there's not a lot of hotel product out there, and when it does come up, it gets chased pretty aggressively, driving cap rates down for top-shelf, select-service hotels. As we also recently reported, Apodaca and Bob Kaplan arranged the sale of the 121-room Hampton Inn & Suites Santa Ana/Orange County Airport for an undisclosed amount to a private investor, acting as exclusive agents for the seller, Pacifica Hiorange LP.
Apodaca was also part of the team, which included Bob Kaplan and John Karver, that acted as exclusive agents for the seller of the two San Diego hotels. In a prepared statement, Kaplan said the properties “are exceptional value-add opportunities since the buyer will continue renovations and implement their management expertise.”
The Comfort Suites was built in 1987, and the buyer is planning to implement an extensive renovation. The Holiday Inn Express was built in 2001 and recently underwent a Formula Blue refresh by the seller.
To gain strength, as we reported in July, hoteliers have banded together to bring out the unlevel playing field they are on with Airbnb in terms of regulations, and the sector is also focusing on social spaces, customer service and consistency in its product, R.D. Olson Development's president Bob Olson told GlobeSt.com. Olson said there are various regulations over the hotel industry that do not yet govern Airbnb, putting the sector at a disadvantage businesswise.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
