Hilton Garden Inn San Diego Mission Valley Stadium
3805 Murphy Canyon Rd, San Diego, CA 92123
THE OFFERING
RJA Hotels has been retained as an exclusive advisor to solicit offers to purchase the leasehold interest in the recently renovated 178-room Hilton Garden Inn San Diego Mission Valley Stadium (“HGI” or “Hotel”). Located along Interstate-15 and near Interstate-8 with easy access to multiple demand generators, including 27 million square feet of office and industrial space, Snapdragon Stadium, Petco Park, San Diego Zoo, SeaWorld, Downtown San Diego & The Gaslamp Quarter, Old Town and San Diego’s world-famous beaches. This offering represents a rare opportunity to purchase the long-term leasehold interest of a fully renovated, well-performing asset in one of the country’s premier visitor destinations, historic strong market RevPAR and with a leading brand affiliation.
The Hotel is being offered with favorable assumable CMBS financing at a fixed rate of 4.65% due July 2029, unencumbered of management, non-union operations and a unique opportunity to retain the existing Hilton Garden Inn brand.
INVESTMENT HIGHLIGHTS
THRIVING AND HIGHLY DESIRABLE HOTEL MARKET - San Diego is one of the strongest and most consistent markets in the country given its strong tourism and leisure demand base. As such, combined with San Diego’s growing and prosperous commercial base, the lodging market has seen, and is poised to continue to achieve robust RevPAR growth. According to CBRE Hotels’ Hotel Horizons report and Kalibri Labs (Q3 2022 Edition) for the San Diego market, RevPAR is projected to increase on average at a rate of 4.4% annually through 2026.
RECENT MAJOR CAPITAL IMPROVEMENTS - Prior ownership acquired the property January of 2015 and transformed a former Holiday Inn to a Hilton Garden Inn through a $10+ million renovation between 2015 and 2018. The comprehensive renovation included the guestrooms, guest bathrooms, lobby and front desk space, the on-site restaurant and bar, meeting space and new signage. Present ownership have made additional upgrades including but not limited to elevators and guestrooms.
IMPROVING FINANCIAL PERFORMANCE - Following the renovation and conversion to a Hilton Garden Inn in 2016, the hotel achieved an occupancy of 83.6% at an Average Daily Rate (“ADR”) of $140.59 as of yearend 2017, resulting in a RevPAR of $117.57. By year end 2024, the Hotel's performance significantly recovered post Covid and continued to improve. Occupancy hit 87.2% and ADR increased to $172.01, generating a RevPAR of $149.95. Another top line enhancement is that the hotel is strategically expanding its catering sales efforts to capture a larger share of the social and corporate markets. This initiative is expected to drive a significant increase in catering revenue in 2025, aligning with ownership's growth objectives.
ASSUMABLE FINANCING - Favorable CMBS financing at a fixed rate of 4.65% due July 2029. Current balance of approximately $21.8 million.
MANAGEMENT/NON-UNION - The HGI is being offered unencumbered by management with non- nion operations.
DEMAND GENERATORS
San Diego & Other Attractions
San Diego is considered one of the top lodging markets in the nation as hotels are able to attract strong levels of visitor demand seven days a week through multiple segments, given the area’s strong and diverse mix of economic drivers. With the property's centralized location and proximity to Interstate 15, Interstate 8 and Hwy 52, all of the area’s local attractions are located within a short commute. Tourists are able to enjoy a wide array of unique destinations such as: Snapdragon Stadium, SeaWorld, San Diego Zoo, San Diego Zoo Safari Park, Gaslamp Quarter, LEGOLAND California, Balboa Park, PETCO Park, Del Mar Fairgrounds and Racetrack, Torrey Pine State Natural Reserve and Golf Course, San Diego Polo Club and the Village of Carlsbad.
Snapdragon Stadium
Opened in August 2022, and located one freeway exit south of the HGI, along Interstate 15, the 35,000-seat stadium is the home of SDSU Aztec Football, San Diego FC of Major League Soccer, and San Diego Wave FC of the National Women’s Soccer League. In July 2024, the stadium will hosted the World Lacrosse Championship, and will be the host of the 2031 Rugby World Cup.
Planned 2025 events for Snapdragon Stadium include:
• Monster Energy AMA Supercross Championship January 18
• SheBelieves Cup hosted by the top-ranked U.S. Women's National Soccer Team February 26
• San Diego FC Major League Soccer March 1- September 27
• Shakira June 26
World-class Education & Research Facilities
The market’s well-educated workforce is supported by several colleges and universities within a 30 mile radius: California State University San Marcos, University of California San Diego (UCSD), University of San Diego (USD), San Diego State University (SDSU), Mira Costa College, Palomar College, and Miramar College. UCSD, located approximately 8.5 miles north-west of the hotel, represents the center of higher education in the greater San Diego area and features the Scripps Institution of Oceanography and the San Diego Supercomputer Center. Additionally, noteworthy research facilities like the Sanford-Burnham Medical Research Institute and the Salk Institute are also situated proximate to the UCSD campus, which collectively are a major economic driver for the region.