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San Diego Area Hotel Market Heats Up

LA JOLLA, CA-Sunstone Hotel Investors Inc. picks up the 335-room Embassy Suites Hotel for $100 million. The 68-room StayBridge Suites Hotel in Downtown San Diego also finds a new owner.

By Amanda Paxson | Updated on May 18, 2006

LA JOLLA, CA-The San Diego hotel market is bustling with activity as the Embassy Suites Hotel in La Jolla sells for $100 million. Hotel REIT Sunstone Hotel Investors Inc. acquired the property, adding to its 62-hotel portfolio.

According to Robert A. Alter, CEO of Sunstone, the property is “a high-quality asset in a market with robust business and leisure demand generators.” The deal was financed with a $70 million five-year loan. Set at a rate of 6.6%, the loan is interest-only and will mature in 2019.

Alan X. Reay, president of Costa Mesa-based Atlas Hospitality Group, tells GlobeSt.com that because of increased tourism and an upswing in the business sector, competition for hotel property is stiff. “The asset is a great buy for Sunstone,” he says. “La Jolla is a hard market to get into, even at the $100 million price.”

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