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LVMH to Sell Santa Barbara Hotel, Its Only U.S. Lodging Property
French luxury giant LVMH Moet Hennessey Louis Vuitton is selling its only U.S. hotel, the El Encanto at 800 Alvarado Pl. in Santa Barbara, reported Bloomberg News. The 90-key property is being purchased by a partnership of brothers Justin and Tyler Mateen and Culver Capital for $82.2 million.
“We look at it as we’re buying 20% of the class A luxury hospitality market in Santa Barbara, which we believe is a growing market,” Tyler Mateen told Bloomberg.
The sale price per key, about $900,000, is comparable to other recent resort transactions in coastal California, where strict government regulations and a scarcity of land create high barriers to entry, according to Alan Reay, president of Atlas Hospitality Group, a hotel brokerage based in Newport Beach.
“It may look expensive today, but 10 or 20 years from now it looks like a good deal,” Reay said.
Image courtesy of Gensler.
- ◦Sale/Acquisition
