SANTA ANA, CA-A joint venture between San Diego-based Trigild, Blu Hotel Investors and Pacifica Real Estate Group has acquired the four-story, 121-room Santa Ana Hampton Inn & Suites at 2720 Hotel Terrace Dr. here. While the parties involved declined to disclose a purchase price to GlobeSt.com, Blu's founder and principal Michael Barnard tells us that the price was “well below replacement cost.”
Built in 1992, the hotel is situated on 1.45 acres near South Coast Plaza and John Wayne International Airport. It houses a 600-squar-foot breakfast room, 400 square feet of meeting space a fitness room and outdoor swimming pool and spa. Guest rooms are all suites and measure approximately 400 square feet apiece.
The hotel will continue operations under the current Hampton franchise agreement, but Trigild plans to facilitate numerous upgrades and renovations to the property. The firm, which has decades of experience in the hospitality industry, will handle day-to-day management, overseeing more than 40 employees and spearheading a $1-million renovation and improvement effort to the property that encompasses the hotel exterior, lobby, meeting space, breakfast room, guest rooms, guest bathrooms and outdoor pool area.
“This is an excellent opportunity as the hotel meets our overall criteria of investing in high barrier-to-entry markets with premium brands,” said Barnard in a prepared statement. “The hotel is ideal for both business and leisure travelers and represents a very stable investment, with tremendous upside potential—especially given its prime Orange County location.”
According to John Beazley, Trigild's managing director of hospitality, this new acquisition is the first joing project of a recently formed alliance that combines Trigild's strong operational background with Blue Hotels' lodging investment expertise and PREG's real estate experience and financial strength. “Working together on this deal enables the companies to share resources, services and specialties and positions us jointly to develop, acquire and operate hotel properties with institutional or individual investors,” said Beazley in the statement.
He added that the renovation is slated to be completed by the end of this year and will position the hotel to compete with newer, upscale hotels in the region.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
