CH Projects’ 60-Room Hotel Proposal in San Diego’s Little Italy Faces Challenges

By The Registry Staff 

In the heart of San Diego’s Little Italy, a project called Dreamboat by CH Projects, led by restaurateur Arsalun Tafazoli, is in the works. The ambitious proposal includes a boutique hotel, state-of-the-art offices, a wellness center and two restaurants. However, the project faces a formidable obstacle – the San Diego County Regional Airport Authority’s verdict that its location under the flight path violates land use regulations, according to a report from the San Diego Union Tribune. 

The stumbling block is the 60-room hotel project’s location directly under the flight path. The site of the development would be at 2345 Kettner Blvd., a site which is flagged by the Airport Authority as incompatible with regulations.

CH Projects has filed an appeal to challenge the determination. The outcome, set for a hearing in April or May, holds the potential to set a precedent for how cities reconcile urban growth with aviation regulations designed to protect airspace and surrounding environments.

As the appeal process progresses, the voices of Little Italy’s residents become pivotal in shaping the narrative and potentially influencing the project’s future. The anticipation builds not only within CH Projects but also across the broader San Diego community.

If the appeal on the Dreamboat hotel is approved, the firm plans to break ground on the project in 2025. 

In addition to the Dreamboat hotel project, CH Projects founder Arsalun Tafazoli oversees the operation of three other San Diego hotels. In March 2021, he acquired and renovated North Park’s historic The Lafayette Hotel, Swim Club & Bungalows for $25.8 million. Later in 2021, Tafazoli purchased Little Italy’s 67-room La Pensione Hotel for almost $18 million. In 2022, he also secured a long-term lease for Coronado’s La Avenida Inn, a 29-guestroom property, with the transaction amount undisclosed.