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Hotel Del Coronado Enters Final Phase of $550 Million Renovations

Blackstone Invests $160 Million in Southern California Resort's Victorian Building
The Hotel Del Coronado is entering the final, $160 million phase of Blackstone Group's $550 million, multiyear development plan. (CoStar)
The Hotel Del Coronado is entering the final, $160 million phase of Blackstone Group's $550 million, multiyear development plan. (CoStar)

Originally built in 1888, the Hotel Del Coronado is one of the most historic and iconic hotels in both California and the entire U.S. And the property is now entering the final stages of a years-long, $550 million development funded by owner Blackstone Real Estate.

Work on the Southern California resort located near San Diego is expected to complete in the spring of 2025 with the final, $160-million phase focusing on the Victorian building. That building was the first part of the resort complex.

Key Facts

In 2018, Blackstone announced the $550 million development plan. Newly added and renovated portions of the property include the Short House at The Del, billed as "75 new residential-style accommodations on the south end of the resort," the Beach Village at The Del, an "enclave of cottages and villas" opening at the end of this year, the Ocean Concierge Club, the Ice House Museum, and several retail, restaurant and guestroom improvements.

The project has already garnered multiple awards. Work on guestrooms picked up the "Preservation Project of The Year" from the Save Our Heritage Organisation, and work on the front porch and lobby areas earned the "Preservation Design Award" from the California Preservation Foundation.

History

The lineage of the Hotel Del Coronado goes back to 1885 when a group of investors led by E.S. Babcock bought the nearly 4,000 acres of Coronado and North Island for $100,000.

The property has hosted a dozen presidents and countless celebrities. The property was famously a favorite of Franklin Roosevelt.

The property underwent multiple waves of expansion throughout the course of the 20th century, including a $150-million renovation in the 1960s when owner M. Larry Lawrence, who originally planned to demolish the property and redevelop the land, doubled its room count to 700 and constructed the Grande Hall Convention Center.

Ownership of the hotel has changed hands multiple times this century. It was once jointly owned by Blackstone Group, Strategic Hotels & Resorts and KSL Resorts, but became fully owned by Strategic in 2014. It went back to Blackstone when that company bought Strategic in 2015, and remained under Blackstone's ownership even when Strategic sold to Chinese insurance company Anbang Insurance Group in early 2016 due to government concerns over a foreign entity owning a resort located so close to Naval Base Coronado.

The hotel is now part of Hilton's Curio Collection and was inducted into the National Trust for Historic Preservation's Historic Hotels of America in 2018.

What's New?

The improvements at the Victorian building, which have included a renovation of its entrance and lobby area, will cover "guestrooms, suites and event spaces such as the iconic Crown Room."

"We are thrilled to embark on this exciting and final journey of Blackstone’s investment in this one-of-a-kind resort," Managing Director Harold Rapoza said in a statement. "The Victorian building holds a special place in the hearts of our guests, and we are dedicated to preserving its historical significance while elevating the bespoke guest experience to new heights.”

The project is being led by Wimberly Interiors, which is the interiors service line of WATG.

Read more news on Hotel News Now.

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