Ritz-Carlton, Lake Tahoe sells for $120 million
January 16, 2019
Global real estate investment company Kennedy Wilson announced Wednesday the sale of the Ritz-Carlton, Lake Tahoe for $120 million to Braemar Hotels & Resorts.
Braemar Hotels & Resorts announced in November it had agreed to acquire the 170-room Ritz-Carlton Lake Tahoe in Truckee. At that time, Braemar also announced it would acquire a 3.4 acre plot of vacant land adjacent to the hotel for luxury residential townhome development.
"The acquisition of the Ritz-Carlton Lake Tahoe is an opportunity for us to acquire an iconic and irreplaceable luxury resort property with a premier location on the Northstar ski mountain in the world-famous Lake Tahoe area," Richard J. Stockton, Braemar's President and Chief Executive Officer, said in November. Kennedy Wilson and its partner acquired the Ritz-Carlton, Lake Tahoe's 170 hotel rooms, 23 condominiums and 3.4-acre development parcel in 2012 for $74 million and have since solidified the resort as one of the most upscale destinations in Northern California.
The company also completed the sellout of all 23 condominium units at The Ritz-Carlton Residences in 2016 for a total gross sales price of approximately $50 million.
"We saw a tremendous opportunity to acquire this iconic luxury hotel property from a group of lenders at a significant discount to replacement cost in 2012 and with a focus on enhancing amenities and operational performance, we have repositioned the Ritz-Carlton, Lake Tahoe as a leading resort in one of the country's most popular tourist destinations," William J. McMorrow, chairman and CEO of Kennedy Wilson, said in a news release. "The sales of the Ritz-Carlton, Lake Tahoe and the U.K. hotel portfolio enable us to tap into the value we've created and to continue recycling capital into other strategic investment opportunities."
According to the release, Kennedy Wilson in 2017 debuted Lake Club, a multi-level dining and bar facility that helped transform the hotel from a primarily winter resort into a year-round destination. The Lake Club provides guests direct access to the lake with an expansive lawn that extends to the water's edge and a private boat pier offering summer recreational activities.
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"This property fits perfectly with our strategy of owning luxury hotels and resorts and further diversifies our portfolio while also increasing the overall (revenue per available room) of our portfolio," Stockton said in announcing the agreement. "This will be the third Ritz-Carlton in our portfolio, and with the strong market fundamentals in the Northern California area along with our proven ability to work with Ritz-Carlton to maximize property level performance, we are excited about the future prospects for this iconic property."