Success Story
Hotel del Coronado - San Diego, CA
In August 1997, Lowe Enterprises Investment Management (LEIM) acquired the Hotel del Coronado on behalf of an institutional investor, at which time Destination Hotels & Resorts began managing the property.
Originally constructed in 1888, The Del became world-renowned as a premier beachfront resort. However, as more and more luxury hotels were proposed for the region, The Del's market share was a considerable risk. The overall San Diego market was strong, but the property needed to be updated as the competitive environment in Southern California intensified.
Destination saw that The Del was a rare asset with an unrivaled history, but now needed to compete with the top resorts in the United States. A five-year, multi-million dollar renovation and restoration project was developed to rejuvenate and enhance the property by upgrading its physical condition. Despite room and facilities closures during the renovation, The Del's average rate growth was 7.9% annually. RevPAR growth was 3.6%, and gross revenue increased 4.5% annually.
To correct a disparity between The Del and other world-class resorts in the United States, a sales and marketing effort was developed to increase the property's rate structure and profitability. The gap between The Del's ADR and its competition diminished, enabling the property to compete with world-class resorts on both a national and regional level.
The Del was sold on behalf of the institutional investor in 2004.
