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Mission Valley Hotel Sells for $19.5M

169-Room La Quinta is Second Property Sold Recently by SD-based Pinnacle Hotels
January 8, 2018
An affiliate of Cerritos, CA-based Kamla Hotels has purchased the169-room La Quinta Inn & Suites hotel in San Diego's Mission Valley submarket for $19.5 million, or about $115,000 per room.

The sale of the property at 641 Camino Del Rio S. marks the second local sale in recent weeks by affiliates of San Diego-based Pinnacle Hotels USA, Inc.

In mid-December, Pinnacle sold the 178-room Radisson Hotel in San Diego's Rancho Bernardo neighborhood to Portland-based Kashl Corp. for $22.8 million, or approximately $128,000 per room.

“The performance of hotels in the San Diego market has generally stayed pretty strong,” Peter Hui, president of brokerage firm Hospitality Unlimited Investments, Inc. told CoStar News. He pointed to continued high occupancy and room rates, among other factors.

Hui’s firm represented the buyer and seller in the most recent Mission Valley deal, which was among several similar deals completed by the firm in recent months throughout Southern California. Hui said demand for mid-sized chain hotels has generally remained steady in Mission Valley, as well as North County markets such as Carlsbad.

While overall Southern California transaction volume for his Cerritos-based firm slipped slightly in 2017 from 2016 levels, Hui anticipates that barring an unforeseen jolt to the national economy that discourages consumer spending and travel, demand should remain high in 2018.

Another factor driving sales of older existing hotels, he said, is that prices are rising for labor, materials and land for those looking to develop new hotels in built-out submarkets like Mission Valley.

The 63,000-square-foot La Quinta hotel was built in 1985 and renovated in 2002.

Amit Sharma of Hospitality Unlimited Investments represented the buyer. Peter Hui of Hospitality Unlimited Investments represented the seller.

Please see CoStar COMPS #4099084 for more on this latest transaction.

Lou Hirsh, San Diego Market Reporter  CoStar Group   
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