Hotel Sales are Booming Along the South Coast
A recent Noozhawk article by Joshua Molina dives into the recent sale of the Hotel Californian, one of many hotels to change hands amid the Covid-19 pandemic. It’s a good time to be in the hotel business. The Hotel Californian, Hotel Santa Barbara, Hotel Indigo, the Kimpton Goodland Hotel and the Pacifica Inn and Suites in Goleta all sold in 2021. Typically, there might be one hotel sale in a year. In Santa Barbara, it’s a hot market because the coastal town is an attractive destination for travelers from San Francisco and Los Angeles. It’s a driving destination that offers a steady supply of tourists. In addition, Santa Barbara has long been a destination for European travelers, and as COVID-19 cases continue to drop, it’s likely that travel will pick up. Santa Barbara’s hotel boom was highlighted by the sale of the Hotel Californian. The 121-room hotel at the corner of State and Mason streets features paseos, gardens, a rooftop pool, event deck, a ballroom and Moroccan-inspired spa and saloon, event spaces, a fitness center, a fashion boutique and restaurants. “You have to credit that lower State Street redevelopment, now the Funk Zone, all being triggered once the Hotel Californian was built,” Chris Parker said. Kathy Janega-Dykes, president and CEO of Visit Santa Barbara, also said that hotels on the South Coast have experienced success that others in the rest of the state have not. “Hotels along the South Coast performed surprisingly well compared to their peers in other markets,” Janega-Dykes said. “Revenue per available room, a common metric used by hotel managers, increased locally by 21% from 2019 to 2021. This compared to California overall, where the same metric decreased by 27%.” Hotel average daily rates in January 2022 were $266 along the South Coast, compared with $211 in January 2020, Janega-Dykes said. “This strong rebound in hotel rates again showed that travelers place a high value on trips to Santa Barbara for our outdoor lifestyle, temperate weather and quality restaurants, wineries and cultural attractions.” She said she expects more good news for hotels and the travel industry soon. The Palms - Carpinteria If you are in search of a hotel or restaurant property on the South Coast there are still exceptional properties out there. The Palms - 701 Linden Avenue (pictured above) is a Carpinteria institution with opportunity for a boutique hotel, restaurant or rental income. This restaurant and mixed use building is ready for its next chapter. Read the full Noozhawk article here.