Trigild, Blu Hotel JV Buys 121-Room Santa Ana Hampton Inn & Suites
- Mar 19, 2013
Just five months after forming a strategic alliance to build, buy and operate hotel properties, Trigild and Blu Hotel Investors have made their first acquisition, the Santa Ana Hampton Inn & Suites in Santa Ana, Calif. The joint venture partnered with an investor, Pacifica Real Estate Group, on the purchase of the 121-room, Southern California hotel.
Financial terms of the transaction have not been disclosed; however, as John Beazley, managing director of hospitality for Trigild, told Commercial Property Executive, “The price was well below replacement cost.”
Carrying the address of 2720 Hotel Terrace Dr., the 21-year-old Santa Ana Hampton occupies a nearly 1.5-acre site within close proximity to leading demand sources, including the John Wayne International Airport, Disneyland and the 2.8 million-square-foot South Coast Plaza, a luxury shopping center that has become a national and international tourist destination. The property fits perfectly with the joint venture’s strategy of acquiring premium-brand hotels in high barrier to entry markets. And the call for lodging accommodations is growing louder near the Santa Ana Hampton and in Orange County in general.
“High corporate demand as well as leisure is spurring hotel demand in the Orange County market,” said Beazley. “There is a high corporate demand for mid-week business, while the summer season fuels leisure demand, especially due to sports teams and Disneyland business. This hotel is unique in that it has a high-leisure demand when corporate business is not active.”
The hotel will continue to carry the Hampton flag, and Trigild will manage the property and oversee its $1 million renovation program.
The purchase of the Santa Ana Hampton is just the beginning. “The Trigild/Blu Hotel Investors alliance plans to acquire additional hotels in Southern California this year and later acquire properties elsewhere around the country, in possible states including Oregon, Washington and Colorado,” Beazley added. “Categories we will look at include premium brands, [such as] Hilton, Marriott, and Intercontinental, as well as independent, coastal hotel properties, which we can reposition for a long-term investment. We are also looking at economy brands in prime locations, ideal for repositioning.”
Theirs is a simple formula. “The overall vision is quality growth for both Trigild and Blu Hotel Investors; doing good deals in good locations is the key,” he concluded.