NEW YORK—Carey Watermark Investors 2 Incorporated (CWI 2) has acquired the 372-key San Diego Marriott La Jolla.
Michael Medzigian, CEO of CWI 2, said, “The opportunity to expand our West Coast presence and at the same time acquire a recently renovated, high-quality property allowed us to add a strong cash flowing asset in a submarket with very high barriers to entry. We believe the hotel’s prime La Jolla location will allow us to continue to benefit from the strong demand generators in greater San Diego, while at the same time mitigating long-term supply risk as a result of the high degree of difficulty and expense that go along with new construction in this area. The acquisition also provides CWI 2 with the opportunity to geographically diversify its portfolio with an acquisition in a strong Southern California market. We are extremely pleased to continue to expand on our already important relationships with both Marriott International and HEI Hotels & Resorts.”
The San Diego lodging market has achieved a compound annual growth rate in RevPAR of 7.3% from 2010 to 2015, outpacing the national average of 6.8%. As of March 2016, the trailing 12-month RevPAR for the La Jolla market increased 6.5% over the previous 12-month period.
The hotel has undergone a total of $21 million in capital improvements since 2011, including a $17 million comprehensive renovation completed in 2013. During the renovation, all guestrooms received a full soft and casegood replacement and the property underwent a complete lobby and public space renovation, which included the creation of additional meeting space.
The 14-story hotel offers 24,000 sq. ft. of meeting and event space, three F&B outlets, a 476-space parking garage, an outdoor pool and sundeck, a fitness center and a business center.
The property is located within the Golden Triangle, north of downtown San Diego and close to the oceanfront village of La Jolla and the Pacific Ocean. Nearby demand generators include leisure attractions, leading corporations and professional firms, and top research institutions, such as the University of California at San Diego. Located in the University Towne Centre (UTC) development, the hotel is surrounded by over four million sq. ft. of Class A office space and offers direct access via a sky bridge to the Westfield UTC mall anchored by tenants including Nordstrom and Macy’s.