Built in 1888, the storied hotel was acquired by Los Angeles-based Lowe for $330 million on behalf of one of its pension fund clients in 1997. While under Lowe's ownership, the asset has undergone an extensive renovation that included aesthetic enhancements and the structural reinforcement of the property. The $55-million renovation, which was completed in June 2001, included redesigns of the guest rooms, lobby and restaurants, as well as upgrades of the hotel grounds.
Located along 31 beachfront acres on the Island of Coronado in San Diego, the Victorian resort houses a total of 688 rooms. Amenities here include a full-service spa and fitness center, a pool and cabanas, childcare and concierge services.
Although terms of the deal were not disclosed, industry sources say the purchase price has been pegged at upwards of $380 million.
CNL Hospitality Properties, which is an affiliate of Orlando-based CNL Financial Group Inc., is expected to hold a majority interest in the new partnership that will own Hotel del Coronado, with minority partner KSL operating the resort under a long-term management agreement. Once the Hotel del Coronado has been added to its portfolio, CNL's holdings will include 127 hotels in 37 states with more than 27,000 rooms. Some of its notable hospitality assets include the 950-room JW Marriott Desert Ridge Resort & Spa in Phoenix; the 1,310-room Waikiki Marriott Beach Resort and the 428-room Hilton Tucson El Conquistador Golf & Tennis Resort.
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