But by 2009, the owners could no longer afford $300 million in mortgages.Ī foreclosure was in the works, but the main lenders didn’t want to repossess the practically empty hotel. The blufftop resort, across the Pacific Coast Highway from the ocean, was built for upwards of $240 million in 2001. In that era, the tourism business was dead as the global economy crashed after a scary financial market meltdown. Think back to last decade’s Great Recession when nobody seemed to want to own what was then St. I’m guessing the settlement chatter has begun in a squabble over an investment - luxury hotels - that is decidedly not for the risk-averse. And Friday, according to Law360, a judge ruled the seller’s case is good enough that there should be a trial starting in August. And by one metric, Green Street Advisors commercial real estate indexes, hotel values are down 16% in three months.īut the seller insists a deal is a deal and went to federal court in Delaware to force the Koreans to buy. The world’s hotel industry has been slammed by travel fears and business restrictions due to the coronavirus pandemic. Then Mirae Asset Global Investments, the proposed buyers, last week said they were walking away from the deal, claiming the sellers didn’t execute as promised. The deal was supposed to close mid-April as bizarre questions swirled about ownership technicalities of some of those resorts. Korean real estate investors last September were willing to pay $5.8 billion for the resort collection that includes Montage Laguna Beach, Ritz-Carlton Laguna Niguel in Dana Point, Loews Santa Monica, Ritz-Carlton Half Moon Bay, Four Seasons Hotel in East Palo Alto and Westin St. luxury resorts – including six in California – after seizing a failed insurance company two years ago. The Chinese government is trying to unload 15 U.S. In addition, the resort is home to a 20,000-square-foot spa and two outdoor pool decks.įertitta is the owner of the Houston Rockets basketball franchise and Landry’s, a major player in the dining and hospitality industry.You know there’s trouble in the tourism business when nobody seems to want to own a luxury hotel. There are three restaurants on site at the Montage that go by the names of Studio, the Loft, and Mosaic Bar and Grille. … I don’t think anyone predicted what 2021 was going to be like in terms of prices, in terms of dollar volume, and the appreciation that we’re seeing on coastal hotels has been phenomenal.” “There were 13 transactions in California that were above $1 million per room, and five were above $2 million per room. “It was a record year last year,” Reay said. Reay added that the market surprised many with its bounce back the year following the coronavirus outbreak. In November, the 59-room Alila Ventana Inn and Spa in Big Sur fetched $2,542,373 per room, according to Atlas’ year-end hotel survey. Alan Reay, the president of Atlas Hospitality Group in Newport Beach, described the Montage as “irreplaceable” oceanfront real estate and said the price-per-room average would rank second among hotel sales in state history. The reported purchase price of $650 million would bring the price tag to $2.5 million per room. Coast Highway, according to the Orange County Business Journal.īloomberg News reported that Fertitta is on the cusp of a $650-million deal to purchase the Montage, citing sources familiar with the situation who spoke on the condition of anonymity due to the private nature of the discussions.Ī 30-acre beachfront property that overlooks the Pacific Ocean from a coastal bluff, the Montage has 260 guestrooms, a hotel spokesperson confirmed. The resort is owned by China-based Dajia Insurance Group Co., which has asked for as much as $700 million for the sale of the South Laguna hotel located at 30801 S. What was Strategic Hotels & Resort acquired the hotel in 2015 for $360m at a then record deal of $1.4m a key!īuyer: Rumoured to be Landry’s boss Tilman FertittaĪ Laguna Beach luxury resort could soon have new ownership, as reports have surfaced indicating that billionaire Tilman Fertitta has shown interest in acquiring the Montage Laguna Beach. Seller: China-based Dajia Insurance Group Co …what was Anbang Insurance. Name: Montage Laguna Beach, opened in 2003 Main Photo: The pool at Montage Laguna Beach
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