Trinity Real Estate Buys 50% Stake in Omni San Diego Hotel
A fund affiliated with Trinity Real Estate Investments has acquired a 50% stake in the Omni San Diego Hotel from JMI Realty, the original developer. JMI will retain a 50% stake in the property and continue to act as administrator. The property is located in the Gaslamp Quarter and has 511 rooms and 13,000 square feet of fully rented retail space.
Trinity plans to partner with Omni to make strategic real estate improvements that will increase sales for business and leisure travel. ”The plan includes a multi-million dollar capital improvement program to upgrade the guest rooms, food and drink, pool deck and fitness center at the Roof of the hotel.
The San Diego is well positioned for a hotel boom. The market was already a popular destination for motorists, and the pandemic has only made the market more attractive. In addition, there is significant redevelopment work in the area with new office and life science developments that will also drive demand. As a result, Trinity plans to use the renovation plan to capture higher rated transitional and group deals.
This is one of several notable San Diego hotel deals this year. A partnership between Kawa Capital Management and CL Hotels acquired Hotel La Jolla in San Diego. The property has 11 floors and 110 guest rooms and is operated by Curio Collection Hilton, which has extended its lease for 20 years. The selling price was not disclosed.
Earlier this month, Pebblebrook Hotel Trust acquired AAA Four Diamond 210-room Estancia La Jolla Hotel & Spa for $ 108 million and has hired Noble House Hotels & Resorts to manage the property. Pebblebrook funded the acquisition with $ 46 million in cash and assumed $ 62 million in existing, non-recourse, secured debt due in September 2028.
Other owners are also making property improvements in order to Capture demand. Lowe and Atlas Hotels opened the doors to the 40-acre, 675-room Town & Country San Diego Resort. The multi-million dollar project transformed the property into a mid-century modern mixed-use property. The project lasted several years and was designed to appeal to a large number of travelers, including leisure, business and convention goers.