CBRE Arranges $49 Million Sale of Sè Hotel in San Diego
- Jul 19, 2011
July 19, 2011
By Nicholas Ziegler, News Editor
Call it a sign that the hospitality industry, especially in California, is starting to improve. CB Richard Ellis Group, Inc., announced that it completed the $49 million sale of the Sè Hotel in San Diego to an affiliate of Kimpton Hotels & Resorts. The 23-floor property, which was sold under a Section 363 sale, recently underwent an extensive renovation to its mixed-use assets.
CBRE worked diligently for the deal, as everything that leads up to a hearing on the sale of a company’s assets for a Section 363, including the terms and conditions of the sale, are subject to review and approval by a bankruptcy court. Charles Quinn, executive vice president of CBRE, was satisfied with the outcome. “We believe this transaction delivers a positive outcome for the parties. Kimpton adds a great new asset to its strong roster of luxury, boutique hotels and the value of the hotel was maximized for creditors.”
With such an addition to its portfolio, Kimpton is well-positioned to take advantage of the rebounding hospitality industry. According to CBRE’s summer research outlook, hotel vacancy rate sits at 40.1 percent in Q1 of this year, down from a peak of 44.5 percent in the first quarter of 2009 – and that rate is predicted to return to its normal levels by Q2 2011.
“CBRE did a great job with the marketing of the hotel and providing guidance to all involved in the process and the complications of a Section 363 sale,” said John Bailey with PHC Dallas, L.L.C., an affiliate of Prism Hotels & Resorts, the court-appointed chief restructuring officer of the debtor-in-possession, 5th Avenue Partners L.L.C.