Skip to content

Hyatt Regency La Jolla

San Diego, CA

Off-market acquisition of a 417-key hotel from Strategic Hotels, a luxury hotel REIT divesting non-core assets prior its go-private transaction
Gross IRR
Equity Multiple
Hold Period
Total Equity
Equity Profit
Acquisition Price
Exit Price


Hotel Keys


Square Footage


Key Investment Thesis

  • Off-market acquisition of an institutional quality asset in an attractive market that had been undermanaged
  • Located in the La Jolla/University City submarket, which is home to UC San Diego and booming biotech and pharma industries, with proximity to San Diego beaches
  • Representing less than 2% of Strategic Hotel’s total EBITDA, the hotel had not received focused asset management
  • Underwent a $12M renovation immediately prior to JMA’s acquisition, eliminating significant near-term capex needs

JMA Value Creation

Personal relationship with Strategic Hotels generated an off-market deal at a point in the lodging cycle when such trades, especially in gateway markets like San Diego, were rare
Sourced LP equity from Walton Capital, leveraging an existing capital relationship
Engaged hospitality consultants to conduct a thorough review of the labor productivity and hotel cost structure to generate significant savings
Eliminated 50% of Hotel’s CAM budget through diligent review
Worked with Hyatt to introduce resort fee to generate significant high-flowthrough income