One of Southern California’s premier seaside resorts, the Ritz-Carlton, Laguna Niguel, has been sold for an estimated $600 million as the top end of the state’s hotel market continues to thrive.
The luxury inn, where rooms start at about $1,300 a night, was one of Orange County’s first large-scale oceanfront resorts when it opened in 1984 on a bluff overlooking the Pacific in Dana Point.
Its new owner is Denver private equity firm KSL Capital Partners, which invests in high-end leisure destination properties such as a 17th century castle resort in Scotland, Camelback Resort in Pennsylvania’s Pocono Mountains and the Westin Hilton Head Island Resort & Spa in South Carolina.
The recent sale or the Ritz-Carlton, Laguna Niguel, was valued at $600 million by hotel industry analyst and broker Alan Reay, president of Atlas Hospitality, based on recent appraisals and comparable sales of other resorts.
“Trophy properties in irreplaceable locations still command a premium in today’s market,” Reay said. “The properties that are doing the best are in the higher end, luxury division. People that have money are still traveling and are willing to pay the prices that you have to pay to stay at the Ritz-Carlton.”
KSL did not immediately respond to a request for comment.
The 373-room oceanfront resort last sold in 2016 for $317.2 million as part of China-based Anbang Insurance Group’s $5.5 billion acquisition of the Strategic Hotels & Resorts portfolio from Blackstone Group, real estate data provider Costar said.
Last year the Ritz-Carlton, Laguna Niguel, underwent a $50-million renovation of its 373 guest rooms, suites and spa. The hotel is near Laguna Beach and San Juan Capistrano and a 40-minute drive to Disneyland.
With its ballroom and meeting facilities, the resort is able to attract conventions, corporate retreats and weddings as well as high-end tourism, Reay said. “For Orange County, it’s very diverse.”
KSL’s affiliated management firm, Peregrine Hospitality, will operate the property.
Last summer, KSL bought three luxury properties from luxury hotel-focused REIT Braemar Hotels & Resorts for $437.5 million. CoStar said. The properties include the Ritz-Carlton Sarasota in Florida, and the Hotel Yountville and Bardessono Hotel and Spa in California’s Napa region.
