Located 120 miles south of San Francisco, the hotel is rising on a historic waterfront site once occupied by the Del Mar Canning Co. Pacific Hotel management president Clement Chen III says a previous developer started construction on the waterfront site more than 20 years ago, but construction came to a halt after only a few foundations were poured. Construction continued intermittently through the years, but the hotel remained little more than a concept and scattered foundations until 2006, when PHM LLC took over the project, he says.
The project "has been on the horizon for many years and we are delighted to be the ones to bring it to life," he says, adding that due to city zoning limits in effect since the mid-1980s it may be some time before another is built.
The street address of the project is 750 Cannery Row. The 208 rooms include 19 suites and 189 guest rooms, most with views of Monterey Bay. All rooms have a king-size bed or two double beds, marble and granite bathrooms with soaking tubs and walk-in showers, flat-screen televisions and high-speed Internet access. Other amenities include a restaurant and bar, a full-service spa and a Kids Club.
HKS Hill Glazier Studio in Palo Alto designed the hotel. The interior designer is San Francisco-based Alamosa Design Associates, which worked on the Four Seasons and the St. Regis hotels in San Francisco.
The Clement Monterey may be the first new hotel activity in Monterey in the past 20 years, but there has been activity with existing hotel properties there over the past couple of years. In August 2007, the 105-suite Hotel Pacific changed hands for $29 million or $276,000 per door. Located at 300 Pacific St., adjacent to the Monterey Convention Center, the 16-building Spanish-style hotel sits on a ground lease from the City of Monterey that expires in 2034. The new ownership, which had plans for a renovation, is a joint venture of the Harp Group, Mid-America Development Partners and Equibase Capital Group. The seller was Rick Swig and his Not On Cannery Row partnership, which acquired the property in March 2002 for $15.75 million or $150,000 per door.
In September 2006, the owner of the 341-room, 10-story Marriott Monterey Hotel, also next to the convention center, refinanced the property with a $61.5-million loan arranged by Los Angeles-based Sonnenblick-Eichner Co. The ownership, San Carlos Associates, includes investors from Monterey and Seattle. The 10-year, fixed-rate, interest-only loan was for 75% of the property's perceived value.
The Seattle component of San Carlos Associates is believed to be related to Wright Hotels, a Seattle-based hotel and motel management services company. The president of Wright Hotels is Stuart Rolfe, who also is an investor in Seattle-based Coastal Hotel Group, a hotel management and development services company that previously owned hotels in Monterey.
In June 2005, publicly traded MeriStar Hospitality Corp. of Arlington, VA, sold the 204-room Hilton Monterey at 1000 Aguajito Rd. to Valencia-based Ocean Park Hotels for $20.5 million, or $100,000 per key. Ocean Park Hotels said at the time it planned to manage the hotel and invest approximately $5 million in renovations in order to bring it back up to Hilton standards.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 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.
