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7/19/24
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JRK Property Holdings has acquired the 394-room Hilton La Jolla Torrey Pines in La Jolla from Braemar Hotels & Resorts for $165 mil. JRK made the purchase through its through its $350 mil Hospitality Fund.
The resort sits on an 11.4-acre site adjacent to the famed Torrey Pines Golf Course, 15 miles north of downtown San Diego. Resort amenities include large guest rooms with balconies overlooking the golf course and Pacific Ocean, three food and beverage venues, outdoor pool, fitness center, tennis and pickleball courts and 65.2k sf of meeting space. Guests at the Hilton Torrey Pines Hotel also receive exclusive tee times for Torrey Pines Golf Course, which has hosted PGA Tour events since 1960.
According to the San Diego Tourism Authority, the region attracted approximately 30.5 million visitors in 2023, driving occupancy rates in the region to near record levels at 73%. The upscale, full-service Hilton Torrey Pines hotel has outperformed the competitive market in occupancy, average daily rate and RevPAR every year since 2016, according to Eastdil Secured, which marketed the property on behalf of the seller.
“This was a rare opportunity to acquire a generational California oceanfront location with growing leisure demand, potentially negative supply, and in one of the strongest and most coveted life sciences corridors in the country,” said Shaan Bhatia Head of Hotel Investment for JRK. “The property generates significant cash flow with a large rate gap to higher end resorts in the market. During our hold period, we intend to invest significant capital to revamp guest experience and are excited to work with our partners at Hilton once again to drive value for our investors. We secured the opportunity in a highly competitive bidding process, and executed despite on-going challenges in the capital markets.”
The hotel benefits from its location in the heart of the La Jolla/Torrey Pines life sciences market, which is ranked third globally, according to Eastdil Secured. The University of California at San Diego, Scripps Research Institute, and the Salk Institute which accounts for 79% of NIH funding, are all located within two miles of the property.
JRK’s Hospitality Fund focuses on full- and select-service hotels for opportunistic and value-add investments across the nation. The fund targets transactions of more than $30 mil. JRK intends to acquire over $500 mil of additional assets in the hospitality space over the next 12-18 months.
Other assets in JRK’s hospitality portfolio include Oceana Santa Monica; a five-property Marriott-flagged portfolio in Austin, TX; the Ace Hotel in Palms Springs, CA; and a two-property Hyatt flagged portfolio in San Juan, Puerto Rico.
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