La Costa Resort Is ‘The One That Got Away’ From CNL

CARLSBAD, CA— As industry observers this month focus on the anticipated close of CNL Hospitality Properties Inc.’s acquisition of KSL Recreation Corp. and six of its trophy properties, the “one that got away”— La Costa Resort and Spa— has high expectations of its own. La Costa is nearing completion of a $140 million renovation and is prepparing for both the addition of 197 villa units set to get underway this August, and a separate $65 million oceanfront boutique property in the near future. Marking its 40th year in operation in 2005, the seminal spa resort has reinvented itself to compete in the current “self-improvement and wellness experience” market it helped launch in the transitional decade of the Sixties. While long a leader in its field, attracting the rich and famous during its heyday and defining spa exclusivity, the resort over time faced erosion of its marketshare as greater numbers of spas— from day to full-service— took the lead from La Costa and ran with it, opening in significant quantity over the past four decades. Its distance from the top spot it once occupied could be read in the price KSL paid for the 400-acre 474-room property in 2001. At $120 million, the acquisition price was less than one half the $250 million Japan-based Sports Shinko— which later filed for bankruptcy— paid for the sprawling resort in 1987. Once KSL acquired the property, it set out to return it to its former glory. “The bones of the resort, with the golf, and the spa and the tennis and the Chopra [Center for wellness] offered a tremendous opportunity to compete successfully with San Diego-based hotels and with the Southern California elite hotels. KSL felt the supply/demand equation really was favorable and if it could make the right decisions regarding renovating it and getting it in the most desirable position then we could really be successful,” said Craig Jacobs, regional vp/sales and marketing for La Costa, as well as the Hotel Del Coronado in San Diego, of which KSL owns 30% and CNL 70%. Toward that, over the past two years KSL has revamped the resort. At the center of the renovations is a new $12 million spa, encompassing 43,000 square feet divided into a 28,000-square-foot interior and 15,000-square-foot outdoor courtyard, overseen by Spa Director Jeremy McCarthy. KSL tore down the original facility to make way for the enhanced version. There are 42 treatment rooms that include 20 massage, eight facial, six body treatment, two multipurpose, two Thai, two VIP spa suites for couples, one hydro-tub and one Vichy shower. Steam, sauna, cold plunge,whirlpool and showers are available as well. The facility thus far is doing “very well,” said Jacobs. “We’ve got a lot of local demand for it as well as all of our leisure guests and many of our conference guests.” The spa also incorporates lounges, a full-service Yamaguchi salon, retail boutique and movement and fitness training studios. A café features trademarked Conscious Cuisine developed by La Costa executive chef Cary Neff in tandem with the resort’s Chopra Center’s executive chef Leanne Backer. The Center, which KSL opened to complement the spa, was founded by noted authors/physicians Deepak Chopra and David Simon and incorporates treatments and therapies based on Ayurveda, the so-called 5,000-year-old healing system of India. Educational workshops and seminars also are available. The property also buffed up its fitness center offerings with the new Athletic Club at La Costa, an 8,000-square-foot high-tech facility that now serves as home base for the U.S. Golf Fitness Association, and which is located in the remodeled 160,000-square-foot Clubhouse. There’s also a 21-court tennis center that offers three playing surfaces: grass, clay and hard. Two PGA Championship 18-hole golf courses designed by Dick Wilson have been restored as well, with new tees, trees and strategic bunkers added. Similarly, new landscaping has been completed at La Costa and a 25,000-square-foot