Hotel REIT buys Southern California hotel for record price
Strategic Hotels & Resorts has acquired the 250-room Montage Laguna Beach in Laguna Beach, Calif., from an affiliate of Ohana Real Estate Investors for $360 million, or $1.4 million per room.
Montage Hotels & Resorts will continue to manage the five-star destination resort, which features 250 ocean-facing guestrooms and is located on approximately 30 acres of fee simple owned land sitting atop a 50-foot bluff overlooking the Pacific Ocean.
Opened in 2003, the hotel features 60 suites, 16,000 square feet of indoor meeting space, a 20,000-square-foot spa, and multiple acclaimed food and beverage outlets.
Montage Laguna Beach is one of the Southern California resort market leaders with a trailing 12 month RevPAR penetration index of 185 times and a 2015 budgeted average daily room rate of nearly $600 and total RevPAR of more than $1,000.
The REIT funded the acquisition, in part, through the issuance of approxi