Phoenix-based Classic Hotels & Resorts paid $11.2 million for a second hotel in Laguna Beach, The Laguna Cliffs Inn.
The company already owns more the upscale Inn at Laguna Beach, which overlooks Main Beach, as well as another California property, La Playa Carmel in Carmel, Calif.
Santa Barbara’s Invest West Financial Corporation has owned and managed the 36-room Laguna Cliffs since 2008. The company paid $8 million in 2008 for the property, according to Alan X. Reay, president of Irvine-based Atlas Hospitality Group, a hotel broker. The current deal reflects the going rate for hotel acquisitions of $300,000 per room, Reay said.
Of Laguna’s nine hotels, whose bed taxes make up 11 percent of the city’s revenue, three of the most dated properties changed hands in 2013: Coast Inn, Crescent Bay Inn and the former Aliso Creek Inn, rechristened The Ranch at Laguna Beach.
The new acquisition by Classic Hotels is half the size of its 70-room Inn at Laguna Beach, a higher end property, though both are located on the ocean side of North Coast Highway, said Reay.
Prior to the deal, Classic Hotels operated six properties in California, Arizona and Idaho and is an affiliate of Grossman Company Properties, a Phoenix developer.