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HOSPITALITY: Sales at Dyer & 55 Are Midscale Trend Marker
George Santayana said those who do not remember the past are condemned to repeat it, but sometimes that's not so bad.
Two recent Santa Ana hotel sales totaling $50 million point to the power of even nondescript local legacy submarkets, a hospitality trend-line that emerges about every 10 years, and the history of hotels and Orange County land development.
CoStar Group Inc. records show Hampton Inn & Suites Santa Ana/Orange County Airport sold for $21 million in September and Holiday Inn Santa Ana-Orange County Airport sold for $28.5 million in August.
Hampton's 121 rooms went for $162,000 per key. It last sold in March 2013 for $16.5 million.
Holiday Inn's 176 rooms sold for $173,000 apiece. It last sold in June 2002 for $12.1 million.
They're part of seven properties off the Costa Mesa (55) Freeway at Dyer Road-the towering and terraced 300-room Embassy Suites by Hilton being the most visible-as cars whiz by on the way to John Wayne Airport, downtown Irvine, OC beaches or Disneyland Resort.
Big names involved here at one time or another include Blackstone Group LP, OC hotelier B.U. Patel, land developer Bob Warmington and several local brokers, including CBRE Hotels.
Scorecard
All of the hotels are at least a quarter-century old.
La Quinta Inn, Country Inn & Suites, Clarion Inn & Suites and Best Western Plus complete the cluster (see chart).
Apart from the two recent deals, the others last sold from three to 21 years ago, none for more than $78,000 a room.
The seven comprise 1,235 rooms with rack rates of $80 to $150 daily, depending on season.
The properties tout business centers more than meeting space, though some do have the latter.
Embassy Suites on the southern end to Clarion Inn at the northern edge is a six-minute walk.
With La Quinta as the hub, each...