Less Is More

Orange County Business Journal, Mar 5-Mar 11, 2007 by Cain, Sandi

The top 10 sales in Northern California, led by the 1,195-room Westin St. Francis San Francisco, brought in $750 million. The Weslin accounted for $440 million of that.

Two OC hotels were among the top 10 sales in Southern California based on price per room: the Ritz-Carlton and the 130-room Vacation Village, a motel-style property dating to the 1950s in Laguna Beach. It sold for $330,769 per room.

The seven-building Vacation Village complex sits on 4 acres with a 300-foot beachfront five blocks from downtown Laguna. Westport, Conn.-based Westporl Capital Partners LLC bought it.

In Los Angeles County, the Fairmont Miramar Hotel Santa Monica was No. 1 at $700.000 per room, while in San Diego, the 235-room boutique hotel Solamar nailed the highest price there at $370,213 per room.

The highest price per room in Northern California was $668.833 for the petite 30room Kenwood Inn Sonoma, which sold for $19.8 million.

Reay said 2007 looks equally bright.

"The volume of sales is starting off strong." he said.

Overall room supply in OC is expected to increase by just 1.8%. according to estimates from PKF Consulting in Los Angeles.

Occupancy shuuld increase by 2% and average daily rates by 3.7%, PKF said.

Taken together, those factors are expected to bring an increase of 5% in revenue per available room, a measure of hotel profitability.