Pritzker Pays Blackstone $20M for 400-Acre Carmel Valley Ranch Golf Resort
Real Estate Channel reports: New York City-based Blackstone Group LP has unloaded the 400-acre, 144-room Carmel Valley Ranch golf resort to John Pritzker's San Francisco-based Geolo Capital company for $20 million or about $138,889 per room.
The property is less than 50 percent occupied and needs $25 million in room renovations and other rehabilitation, including the installation of a new spa, according to Bloomberg and Forbes, which both carried the transaction.
John Pritzker is the son of the late Jay Pritzker, billionaire founder of the Hyatt Hotels chain.
Blackstone bought Carmel Valley Ranch in 2005 as part of its Wyndham International Inc. acquisition, valued at $3.24 billion including assumed debt.
The same year, Blackstone put some Wyndham hotels including the Carmel resort into a new company called LXR Luxury Resorts and announced plans to spend $400 million on improvements.
Luxury-hotel revenue has dropped for 12 months, including 28 percent in April from a year earlier, according to Smith Travel Research Inc. in Hendersonville, TN.
The value of hotel properties in default or foreclosure almost doubled to $17.3 billion in the second quarter through June 24, according to data compiled by New York-based real-estate research company Real Capital Analytics Inc.
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Posted by: Nina Turner