A fund affiliated with Trinity Real Estate Investments acquired a 50% stake in the Omni San Diego Hotel from JMI Realty, the original developer. JMI will retain a 50% interest in the property and will continue to assume the role of manager. Located in the Gaslamp District, the property has 511 guest rooms and 13,000 square feet of fully leased retail space.
Trinity plans to partner with Omni to make strategic improvements to the property that will generate income, with Sean Hehir, Managing Partner, President and CEO of Trinity, saying the company has already identified several opportunities to transform the property. as “the number one destination in the business and leisure travel market. The plan includes a multi-million dollar capital improvement program to upgrade rooms, food and beverage offerings, the hotel’s rooftop pool deck, and fitness center.
The San Diego is well positioned for a hotel boom. The market was already a popular destination by car, and the pandemic has only fueled the market’s appeal. There is also a significant redevelopment in the region with new offices and the development of life sciences, which will also help stimulate demand. As a result, Trinity plans to use the renovation plan to capture the top rated passing and group business.
This is one of many notable hotel deals this year in San Diego. A partnership between Kawa Capital Management and CL Hotels acquired La Jolla Hotel in San Diego. The property has 11 floors and 110 rooms and is operated by Curio Collection Hilton, which has renewed its lease for 20 years. The sale price was not disclosed.
Earlier this month, Pebblebrook Hotel Trust acquired The 210-room AAA Four Diamond Estancia La Jolla Hotel & Spa for $ 108 million, and has retained Noble House Hotels & Resorts to manage the property. Pebblebrook has funded the $ 46 million acquisition of cash and assumed $ 62 million of existing non-recourse secured debt, which matures in September 2028.
Other owners are also making improvements to capture demand. The Lowe and Atlas Hotels have opened the doors to San Diego’s 40-acre, 675-room Town & Country Resort. The multi-million dollar project transformed the property into a mid-century modern mixed-use property. The project has been in the pipeline for several years and was designed to appeal to a wide range of travelers, including leisure, business and convention visitors.