La Jolla’s Marriott Sells for $131M, Biggest San Diego Hotel Sale This Year

The San Diego Marriott La Jolla, which is in University Town Center, has sold for nearly $131M to NY-based Carey Watermark Investors 2, a real estate investment trust that has purchased two other Marriott hotels—in San Jose and Seattle—this year, as well as an Embassy Suites in Denver and Ritz-Carlton in Miami in 2015.

This is the biggest hotel sale this year in San Diego County and third-highest hotel sale in California, according to Orange County-based Atlas Hospitality. The selling price was not disclosed by the buyer, but is based on the deed recorded in the San Diego County Recorder’s office, reports the San Diego Union-Tribune.

HEI Hotels and Resorts purchased the 372-room La Jolla hotel for $71M in 2011 and undertook renovation of all guestrooms, the lobby and dining venues—costing up to $20M. HEI Hotels and Resorts SVP Steen Petri told the Union-Tribune his firm did a costly renovation, so the sale is not as “big a windfall as the records would show.”

HEI will continue to manage the hotel, which opened in 1985. Carey Watermark plans to renovate the hotel’s meeting space. The hotel is surrounded by 4M SF of Class-A office space and is connected to the Westfield UTC mall by a skybridge. [SDUT]

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