Last year, the 400-room Monarch Beach Resort in Dana Point sold for $497 million or about $1.1 million a room. Reay specializes in the sale of hotels in the state. It takes courage but that’s how we operate our business: take advantage of opportunities.”Ītlas Hospitality President and CEO Alan Reay said the joint venture of Eagle Four and Lyon got a great deal, especially for a luxury hotel product in a great location. We felt that this was the right time to do something like this. “We are local owners and we believe in our hometown of Newport Beach. “It’s during times like these that opportunities arise,” Kramer said. Though his own hotels and assets have also struggled amid the pandemic (Eagle Four owns several hotels in Orange County, Hawaii, Nevada, and Arizona), Kramer said he and his company didn’t hesitate when it came time to buy a Class A luxury hotel product - and at a steep discount. “What we are going through with our hospitality industry nationally, and perfectly here in Newport Beach, is nothing short of absolute devastation in terms of our business climate,” Sherwin said. By the summer, a couple of hotels had closed, and those that remained open, the occupancy rate fell to the low 40% range, Visit Newport Beach President and CEO Gary Sherwin told the Newport Beach City Council in July.
A combination of travel restrictions internationally, shelter in place orders throughout California, and coronavirus-cautious companies and people sunk the demand for hotels.īefore the pandemic, Newport Beach averaged an 80% occupancy rate. The acquisition comes as the hotel industry in Orange County - and across the nation - struggles due to the coronavirus pandemic and drop in demand for tourism, live meetings, and conventions. Of course, the seller didn’t have it on their radar to sell but we put an offer together that works for them and from a logical buyer, since we own the Country Club next door.” “I always thought it would be a great opportunity to own. “I looked at this hotel every day,” Eagle Four CEO and Partner Kory Kramer said to Spectrum News 1. The JV plans to renovate the hotel, including adding more public space, overhauling the guest rooms, and moreĭespite the global coronavirus pandemic and its effect on the hotel industry, a joint venture between Eagle Four Partners and Lyon Living acquired the 532-room Newport Beach Marriott at 900 Newport Center Drive from Host Hotels and Resorts in an off-market, $200 million deal.The sale comes amid the coronavirus pandemic and Newport Beach hotels struggling with low 40% occupancy rate.A joint venture of Eagle Four Partners and Lyon Living bought the luxury hotel from Host Hotels and Resorts.The 532-room Newport Beach Marriott & Spa sells for $200 million.