The Mogharebi Group Brokers $16.25 Million Sale of 32-Room Hotel on California’s Central Coast
The Mogharebi Group (TMG) has arranged the sale of the Inn at Avila, a 32-room beachfront hotel property in the Central Coast city of Avila Beach, CA, for $16.25 million. Ben Ketel, of TMG, represented the seller of the hospitality property that traded to a Los Angeles-based private investor.
Built in 1965, the Inn at Avila Beach offers eight different suite types, ranging from modern spa rooms to the exclusive "owner's suite." The property includes a rooftop coffee house, grilling area, a business center and laundry services.
"The Buyer was certainly attracted to the fact that the Inn at Avila's average daily rate (ADR) is approximately $100 ahead of the competition and its average annual occupancy 15 percentage points better," Ketel said. "Then add to that 20% growth expectations for this prime beachfront asset and the ability to boost that even more with capital improvements and one can see how the investment picture is also quite a beautiful one."
In the last five years, many rooms at the Inn have been upgraded with private hot tubs, fireplaces, canopy bedding and other new features. The Buyer has a major value-add opportunity with the continued updating of existing features and the addition of restaurant space.
"Boutique hotels typically do well along California's Central Coast, and the Inn at Avila is well ahead of the curve," Ketel added. "Despite the challenging capital markets environment, we were able to attract a lot of interest and then stay on schedule once we found the quality buyer."
Located three miles off Highway 1 at 256 Front St., almost equidistant between San Francisco and Los Angeles, the Inn at Avila Beach is just steps away from beautiful beaches and the city's waterfront shopping, dining and entertainment district. Visitors also enjoy the town's aquarium, wineries, hot springs and hiking trails.