On behalf of its client, Tarsadia Hotels, Jones Lang LaSalle Hotels seeks a joint venture arrangement for the development of one or two upscale full-service hotels (entitled up to 440 rooms) or the sale of its leasehold development option.
“This is an exceptional location at the entrance of the Gaslamp Quarter,” said Arthur Buser, Managing Director and Head of West Coast Operations for Jones Lang LaSalle Hotels. “It is adjacent to the Convention Center, one block from the new 46,000 seat Padres Baseball Park, two blocks from the San Diego Harbor, and a few blocks from Horton Plaza - an ideal site for one or two first class hotel developments.”
Downtown San Diego is undergoing a dramatic $3 billion transformation with more than 100 redevelopment projects recently completed, currently under construction or planned, including new apartment buildings, condominiums, hotels, office space, an expanded convention center, a new baseball stadium, neighborhood parks and improved infrastructure.
According to Senior Vice President Karen Johnson of Jones Lang LaSalle Hotels, San Diego is an extremely resilient market with its access to lucrative corporate demand generators, particularly in the tourism industry.
“The City of San Diego received the number one ranking for 2002 in the Forbes/Milken Institute study of the `Best Places for Business & Career` in the United States. The overall county has one of the most diversified economies in the nation with a unique mixture of biotech, communications, software, information technology, defense and international trade and tourism related businesses. And, San Diego is one of the most popular vacation destinations with a huge drive-to market,” added Johnson.
The 1.03 acre site is a prime location for hotel development within downtown San Diego. The site is proximate to major attractions such as Sea World, The San Diego Zoo, Wild Animal Park, Balboa Park, Old Town and the beaches of San Diego.
The highly anticipated $216 million, 377,000 square feet expansion of the San Diego Convention Center (SDCC) was completed on September 5, 2001. In the months since September 2001, most convention destinations suffered from sharp contraction in convention demand. However, SDCC experienced continued growth. In 2003, the second full year after the expansion, SDCC is budgeted to generate over 800,000 room nights for hotels in San Diego, a record breaking achievement in the mist of national economic slump.
According to Smith Travel Research, San Diego continues to be one of the nation`s strongest hotel performers. While most convention destinations experienced significant contractions in demand in 2001 and 2002, San Diego has withstood the decline due to the diversity of its demand mix in group, leisure and corporate transient sectors. Performance of downtown`s upscale hotel market is particularly noteworthy. This segment has consistently achieved occupancies in the mid- to high-70% range while increasing the ADR over the past 7 years (except in 2001). In 2002, downtown San Diego`s occupancy is projected to have increased 7 points to 78% while maintaining an ADR of $168. With the expansion of the SDCC completed and booking pace at a record level, the downtown lodging market is poised for even stronger growth in the near future.