Acquired in 2002, this historical landmark hotel was acquired off market. The Hotel was being operated with a restaurant lease in place and with no activation of its rooftop F&B area which has some of the best views of the Laguna Beach coast line. Seeing an opportunity to unlock key sources of additional revenue while benefiting from the market’s high barriers to entry, the Hotel underwent a series of dramatic changes over a 3 year period. The restaurant lease was bought out, the space renovated and re-opened as one of the first tapas focused restaurants in the Southern California. The executive chef would go on to be named OC Business Journal’s Chef of the year. The Rooftop was reimagined and permitted as the Laguna’s first rooftop lounge, which added over $5,000,000 in new revenue. The Hotel also partnered in 2014 with the top 10 surf culture companies in the world, to create the Casa Surf Room concept; giving the hotel national news coverage and developing another differential between the Hotel and its competitors.
This iconic property routinely receives unsolicited offers for purchase which would deliver a 4.5 x Equity Multiple on the original investment.