The overall price for the Hotel Pacific, a 105-room all-suite property, is about $15.7 million. The hotel is located adjacent to the Monterey Convention Center in downtown. It is within walking distance to Fisherman's Wharf and proximate to the Monterey Bay Aquarium and Cannery Row.
Five out of six hotels in this portfolio were sold prior to September 11, according to Jones Lang LaSalle Hotels. This sale was delayed in light of the terrorist attacks, which obviously caused investors and lenders to pause and re-think their strategies. Once the general marketplace solidified, interest by both groups rebounded.
Mark Weinstock, a partner in the Real Estate and Global Hospitality Groups of Jeffer, Mangels, Butler and Marmaro LLP, was the lead attorney representing the seller in the portfolio transactions.
In early September 2001, a group of Monterey investors led by first-time-hotel-buyer Ted Balestreri of the Cannery Row Company purchased Hotel Pacific's sister properties--the Spindrift Inn, Monterey Bay Inn and Victorian Inn. The Cannery Row Company also retained Coastal Hotel Group as the manager. The Hotel Pacific will continue to be marketed along with these properties, which make up the Inns of Monterey.
In early July 2001, Classic Hotels & Resorts of Phoenix, Arizona purchased the 70-room, oceanfront Inn at Laguna for approximately $275,000 per hotel room. In October 2001, the Marshall House, an upscale boutique hotel property in Savannah, Georgia, was sold to local company, HLC Hotels, Inc.
The six-hotel portfolio was a very sought-after hotel portfolio during the first half of 2001, according to Jones Lang LaSalle Hotels. Even though the technology bust in Northern California had ripple effects on Monterey's group and leisure hotel market, the strategic location and inherent high barriers resulted in the long-term hold perspective of the bidders and the extremely favorable pricing for the seller.
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