Blackstone Group, the world's largest alternative asset manager, will sell its remaining 63.6 percent stake in San Diego's landmark Hotel del Coronado for $210 million. And at 757 rooms, that values the famous hotel in excess of $1 million per room, the San Diego Union-Tribune reported.
Built in 1888, the resort has hosted 11 U.S. presidents, dozens of celebrities and was the setting for "Some Like it Hot" with Marilyn Monroe, Jack Lemmon and Tony Curtis.
In 2011, the hotel was close to defaulting on $630 million in loans, when Blackstone invested $100 million and became the majority owner. Investment also came from Strategic Hotels & Resorts, which also owns the Ritz-Carlton, Laguna Niguel. Strategic has now agreed to become the sole owner of the hotel in a deal that includes the assumption of $475 million in mortgage debt.
"In 2012, there were only five hotels that were sold or valued at over a million dollars a room," hotel broker and analyst Alan Reay of Atlas Hospitality Group told the Union-Tribune. "In 2013, the number was over 20, so the unheard-of million dollars per-room ceiling is definitely being breached."
Tourism is big in San Diego, where 33.1 million people visited last year and spent nearly $8.4 billion, according to the San Diego Tourism Authority.
Read the full story in the The San Diego Union-Tribune.