Dave Druker | 10th Street
Recently the L’Auberge Hotel in Del Mar was sold to LaSalle Hotel Properties. LaSalle also owns Hotel Solamar in downtown San Diego and Paradise Point Resort (the old Vacation Village) on Mission Bay.
The price was $76.9 million or $640,000 per room. This price was the most paid for any California hotel in 2012. The major reason for the steep price was the premier location in an area that would be very difficult to build another ocean-view hotel.
According to the current management of the hotel, the management of the hotel will remain the same and there should be no change in the relationship the hotel has with the City of Del Mar or the Tourist Improvement District.
L’Auberge last sold in the early 1990’s for a price of $12 million. The City of Del Mar receives about 14% of the property taxes collected by the county. Del Mar began receiving about $16,800 annually in property taxes beginning in 1990. The recent renovation and the yearly increase in assessed value increased this property tax garnered by Del Mar to maybe $50,000 per year. With this recent sale, the property tax to be received by Del Mar will now equal about $107,660.
It is interesting to note that without any change to the community plan, increase in density to the downtown or traffic configurations, the City will realize at least $60,000 more in revenue per year.