San Diego Pays Top Dollar For Hotels To House The Homeless

The city of San Diego appears to have paid above-market rates for the two Residence Inn hotels it purchased late last year for just over $106 million, properties that city officials are relying on to help reduce the homeless population across the community.

According to an analysis of sales data obtained by The San Diego Union-Tribune, the Residence Inn Mission Valley cost taxpayers $67 million — not including a $502,000 broker’s fee paid by the buyer — or just under $349,000 for each of 192 rooms.

That was the highest per-room cost for any hotel sold in San Diego County last year — and it was based on a valuation that was set weeks before the global coronavirus pandemic wreaked havoc on the hospitality industry.

The Kearny Mesa Residence Inn, also bought by the city of San Diego last year, was acquired for $39.5 million, almost $275,000 for each of its 144 rooms. Both properties closed escrow on Nov. 25. …

Click here to read the full article from the San Diego Union-Tribune.

Speak Your Mind

*