OAK BROOK, Ill.—Inland American Lodging Group, a wholly owned subsidiary of Inland American Real Estate Trust, announced that it has acquired the six-story, 159-room Andaz San Diego, a boutique luxury hotel managed by Hyatt for a purchase price of $53 million, or approximately $333,000 per key.
“We are very pleased to be adding this luxury asset to our portfolio,” said Marcel Verbaas, president and CEO, Inland American Lodging Advisor, Inc. “This purchase aligns with our objective to acquire Luxury, Upper-Upscale and urban Upscale hotels in the top 25 lodging markets. San Diego is a strategic west coast location with seven-day-a-week social and business demand generators and we are excited that we have been able to acquire one of the highest quality hotels in the downtown market at a substantial discount to development cost.”
The Andaz San Diego offers 18,500 square feet of indoor and outdoor meeting space, four restaurants and entertainment venues complete with a rooftop lounge and deck with a heated pool and a health club. Developed as the Ivy Hotel in 2007, the property was branded as the Andaz San Diego in 2010. The hotel recently debuted its newest signature restaurant, Katsuya by Starck San Diego, a leased operation occupying 6,000 square feet of indoor/outdoor space on the lobby level.
“We believe there is substantial operational upside as the Andaz brand matures and as a result of Hyatt’s efforts to grow and support the brand,” Verbaas continued. “We look forward to working with Hyatt to maximize profitability at the hotel and take full advantage of the projected RevPAR growth in the San Diego market.”