Destination hotels seem to be having a moment following one of the worst times the industry has ever experienced after the COVID-19 pandemic breakout. This may be one of the reasons why the owners of Santa Rosa’s Vintner’s Resort may be putting the property on the market for a reported $50 million, which would equate to roughly $641,000 per room.
The story was first reported by the San Francisco Business Times.
The pricing has not been confirmed, and the owners, an entity affiliated with Reno, Nev.-based Don and Rhonda Carano, may be testing the market at the moment without a full-blown marketing campaign.
The property, which was developed in 2006, according to public reports, is located at 4350 Barnes Rd. and is roughly 74,000 square feet spread across seven buildings. Along with the hotel, there are three restaurants on the premises: John Ash & Co., The Front Room Bar & Lounge and River Vine. The property also includes the Vi La Vita spa.
In 2021, California’s hospitality industry saw unprecedented interest as both investors and lenders showed a resurgence in their interest in the sector. According to a year-end hotel transaction survey from Atlas Hospitality Group, 2022 is expected to close with even more optimism, with the report showing record numbers of transactions across the state.
“These are pretty big numbers, over 500 transactions just under $10 billion worth of sales,” said Alan Reay, president of Atlas Hospitality Group, about the state of the industry at the start of 2022. “We also had a record number of hotels selling in excess of a million dollars per room. There were 13 transactions last year where the prices were over a million dollars per key. That beats the entire total for the last 10-plus years.”
At the end of 2021, Irvine, Calif.-based Sunstone Hotel Investors spent $177.5 million, or $2,088,235 per room, to acquire the Four Seasons Napa Valley hotel. This was one of several luxury hotels that traded across the state, a trend that Reay sees as a long-term bet on the health of the California hotel industry, with many believing the state will continue its rebound over the next several years.
“I think what this shows us is that obviously a huge investment interest in California,” stated Reay in a previous interview with The Registry. “There’s a tremendous amount of capital sitting on the sidelines. They’re obviously buying into the future of California because none of the prices that they’re paying are making any sense on the current numbers. These investors are looking at the longer term and everybody is basically voting with their checkbooks to say, ‘We believe California prices are going to continue to climb.’”