After being purchased less than a year ago, a 47-room luxury hotel in Newport Beach has recently been placed back on the market, offering newly renovated rooms in one of Orange County’s top tourist destinations. According to the listing by SRS National Net Lease Group, Hotel Solarena is being offered for $32.4 million, or about $689,361 per unit.
The hotel is located at 6208 West Coast Hwy and totals 25,330 square feet. While built in 1970, the property received modern upgrades this year by IRA Capital, which acquired the hotel in 2021 for $16.15 million, or roughly $343,617 per room. Renovations at the four-story hotel include a new lobby, new flooring throughout, new windows and screen doors, an updated plumbing system, a new roof and more.
The hospitality asset is managed by global hospitality brand Sonder Hospitality USA Inc., and offers a net operating income of nearly $1.3 million. Sonder Hospitality USA Inc. also recently signed a new 10-year lease at the property with two five-year extension options and two percent annual rental increases for the first five years, followed by 2.5 percent annual increases for the remaining term.
In addition to its long term tenant, the property is located along the historic Pacific Coast Highway, which sees approximately 93,000 vehicles per day. Additionally, the hotel is located just four miles west of Fashion Island, a 1.5 million square-foot luxury shopping destination with more than 180 retail and dining options. Popular neighborhoods Balboa Peninsula and Lido Isle are also within close proximity of the property.
According to SRS National Net Lease Group, the Balboa Peninsula is a popular tourist destination, seeing about 7.3 million visitors each year. Newport Beach, in general, draws many tourists with its easy access to the Pacific Ocean. Because of this, Newport Beach saw hotel sales increase by 56.5 percent year-over-year, with over 160,000 rooms sold during the first month of 2022. Additionally, the five-mile radius surrounding the property is home to a large population of nearly 260,000 residents and an average household income of $141,568 per year.
“Tourism is an integral part of Commerce in the city. The mild climate and beautiful beaches draw millions of visitors to Newport Beach each year. With an abundance of water activities to offer, the city is home to one of the largest Leisure focused harbors in the world. In addition to the breathtaking landscape the city has world-class shopping restaurants and hotels for visitors to enjoy. Whether Newport Beach is the destination for a week-long Seaside vacation or a business conference, the city is a wonderful place for work and play,” the offering memorandum states.
SRS National Net Lease Group did not respond to a request for comment.
