Search
 

Western Hotel Refinances Beachfront Property

SANTA CRUZ, CA-The $22-million financing for the Coast Santa Cruz Hotel here was used to pay off the existing mortgage and provide funds for renovation. The owner had wanted to replace the hotel and add a conference center, but the idea was shelved in the face of strong opposition.

By Brian K. Miller | Updated on May 01, 2005

SANTA CRUZ, CA-Western Hotel Properties recently closed on $22 million in first mortgage financing for the Coast Santa Cruz Hotel. The 10-story, 163-room property is the only full-service property that sits directly on the beach in Santa Cruz, which draws 3 million visitors annually. Located adjacent to the Santa Cruz Municipal Wharf and boardwalk, Coast Santa Cruz Hotel has an average occupancy in the high 60% range and is fully occupied in the summertime. The average daily rate is about $170. “One of the reasons it does not fly a major flag is it doesn’t need to,” Elliott Eichner tells GlobeSt.com. “It does so much business by word of mouth.” Eichner is a principal of Sonnenblick-Eichner Company, which arranged the loan.According to published reports, Western Hotel Properties had planned to raze the hotel and construct a new 260-room hotel along with a conference center and parking structure on the property, but shelved their plans in the face of strong opposition. The City of Santa Cruz in January committed to issuing $30-million in bonds to build the garage and conference center and lease it to Western Hotel Properties. The proposed project was headed to referendum later this year.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.