These Bay Area hotels have been quietly seeking new buyers.
Two Wine Country hotels, the Cambria Hotel Sonoma and Cambria Hotel Napa, are for sale, with seller Stratus Development Partners said to be seeking roughly $110 million, or about $450,000 per key, for the 225-room portfolio.
The listing was among a trove of under-the-radar potential hotel deals I obtained and verified with a third-party in the hospitality asset space. According to a confidential offering memorandum circulated to potential buyers, the Cambrias and other comparable hotels have been exceeding pre-pandemic performance over the last 12 months and — at less than 2 years old — offer new builds in a market notorious for high barriers to entry. The 90-room Cambria Hotel Napa opened in August 2021, while its 135-room counterpart in Rohnert Park, the Cambria Hotel Sonoma Wine Country, debuted in August 2020. The entitlement process for both hotels took nearly a decade, per the offering memo. For potential buyers the hotels present an opportunity in a booming drive-to leisure market, with nearby vineyards and downtown businesses and rooms targeting a broader share of guests — including corporate travelers — more focused on activities than pricey guest rooms. Real estate capital advisory firm Ackman-Ziff, handling financing for the hotel owner, enlisted Avison Young to represent the sale to potential buyers. Avison Young declined to comment when reached this week, citing a confidentiality agreement. Firas Turkmani, director of Ackman-Ziff's hospitality group, disputed the target asking price given to me by a source but declined to comment further, citing a confidentiality agreement. The confidential offering memorandum does not list an asking price for the Cambria portfolio. By year-end 2023, the Cambria Hotel Napa expects to achieve $6.7 million in total revenue and a net operating income of about $2.4 million, per the offering memo. Projections from Avison Young expect the portfolio will increase its average daily rate from currently just over $200 to about $255 in 2025. Over that same period the portfolio's total revenue is forecast to climb from $11.3 million this year to $17 million. While the occupancy over the past 12 months including August was 63.9% combined, Avison Young is forecasting an increase to about 75% in 2025. Both properties include an on-site restaurant and bar as well as a whirlpool, with an additional outdoor heated pool in the Sonoma hotel. Both hotels are franchises of Choice Hotels International Inc. and managed by AZUL Hospitality Group. The building owner — the Newport Beach-based affiliate of Stratus Development Partners — did not return requests for comment.Another two-hotel portfolio including the 162-room Courtyard Oakland Downtown is seeking a $122 million buyer. The Oakland hotel is floating a key price of about $300,000, while the portfolio's other property, the 257-room Hilton San Diego Del Mar, seeks $270,000 per room. The owner of both hotels is an affiliate of Gaw Capital, the property investment firm co-founded by Hong Kong billionaire Goodwin S. Gaw. Since those potential offers began circulating last year, the Hilton has been refinanced with a $43.5 million loan and the owner is in the process of refinancing the Courtyard Oakland, a source with knowledge of the actions informs me.
Please follow us on Google to support us United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bay Area baker creates life-sized Han Solo out of breadHan Solo may be a hunk. But “Pan Solo” is a hunk of bread.
Read more »
Bay Area exodus: Median income drops as wealthy residents move outThe Bay Area saw the largest drop in household income of any big U.S. metro region as wealthy people moved away — and current residents of all incomes are more likely to relocate soon than in…
Read more »
9 new Bay Area wine and bubbly bars with sensational sips and small platesA flurry of natural, Italian, bubbly — you name it — vino-centric bars have popped up across the Bay Area in recent years, from Tasting House in Los Gatos to Locanda in Livermore. Here&…
Read more »
Bay Area bowling alley restaurant with Michelin cred shuttersMichelin recognized the Napa restaurant for its outstanding Mexican dishes.
Read more »
Bay Area congressman releases ad portraying world where women get arrested for having an abortionThe ad -- called 'Lock Her Up' -- portrays a woman being arrested in front of her family for having an abortion. When the husband steps in to stop the arrest, police draw their guns on the couple while their children watch in tears.
Read more »
Vice President Kamala Harris in the Bay Area for Climate Change DiscussionVice President Kamala Harris has left the Bay Area after being in San Francisco for a climate change discussion.
Read more »