La Jolla's Estancia Hotel Goes on MarketFriday, June 10, 2011
Owner Lowe Enterprises has placed the 210-room Estancia La Jolla Hotel & Spa up for sale, according to the brokerage firm that was recently tapped to market the property, Jones Lang LaSalle Hotels.
Los Angeles-based Lowe has not disclosed its reasons for putting the hotel on the market. John Strauss, a managing director for Jones Lang LaSalle Hotels, said in a June 1 statement that the property is being marketed “unencumbered” of brand and management, which will “afford a new owner a great deal of flexibility in determining its operating plan for the property.”
The hotel, located at 9700 N. Torrey Pines Road, opened in 2004 and is operated by Lowe’s hospitality management subsidiary, Destination Hotels & Resorts. It includes three restaurants and lounges, an 8,000-square-foot spa, and 21,000 square feet of meeting space.
Alan Reay, president of Irvine-based consulting firm Atlas Hospitality Group, noted that based on current market conditions, and recent Southern California sales of comparable properties, Estancia is likely to fetch an amount meeting brokers’ expectations of roughly $63 million, or $300,000 per room.
The privately held Lowe Enterprises oversees more than $5 billion of commercial, hospitality and residential assets, including property that it owns, manages and develops nationwide. Its Destination division manages more than 30 luxury and upscale hotels, resorts and conference centers.
Jones Lang LaSalle Hotels is a division of Chicago-based Jones Lang LaSalle Inc., which trades under the symbol JLL on the New York Stock Exchange. It has commercial brokerage operations in several markets worldwide, including San Diego.
— Lou Hirsh