Blackstone's $550 Million Renovation of Hotel del Coronado in California

Skift

24-06-2025

In Coronado, California, the Hotel del Coronado announced the completion of the revitalization of its iconic Victorian building, the final milestone in Blackstone Real Estate's more than $550 million restoration plan to enhance the hotel.
The DJIA rose 35 points on Friday while Nasdaq was down 99, the S&P 500 fell 13 points and the 10-year treasury yield was down .02 to 4.38%. Lodging stocks were mixed.
According to data from CoStar, in May 2025, the U.S. hotel industry experienced minor changes in performance metrics year over year. The occupancy rate across the country declined slightly to 65.3%, a decrease of 0.7% from May 2024. Despite the slight drop in occupancy, the ADR for hotels increased to $162.72, marking a 0.8% rise. RevPAR also saw a minimal increase of 0.1%, reaching $106.30. Among the Top 25 Markets, New York City reported the highest occupancy level, although it decreased by 1.0% to 87.9%. On the other end, New Orleans and Houston recorded the lowest occupancy rates at 60.1% and 61.4%, respectively.
As the brand's first resort in Mexico, Waldorf Astoria Los Cabos Pedregal will continue to redefine luxury in 2025 and beyond with the culmination of a multi-year property-wide transformation. The final phase of renovations will begin this summer, with the property fully closing from July 15 - September 30, to transform all 112 guestrooms, suites, casitas and villas. In addition to the complete redesign and transformation of all rooms, the property will also debut a rotation of culinary activations at its enhanced Beach Club to further build upon its roster of gastronomic and authentic Mexican offerings.
Part of the Curio Collection by Hilton, The Ava Hotel in Paso Robles, California, is nearing completion ahead of a summer opening. The 151-room hotel is accepting reservations for stays beginning September 22. The property will have a ground-level retail storefront and a signature dinner and weekend brunch restaurant. The hotel will also introduce Paso's first rooftop bar and pool. The Ava will have more than 3,000 square feet of event space, including the Tablas Ballroom and a pre-function area as well as the Rooftop Terrace.
Construction began this spring on the development of a new Home2 Suites by Hilton hotel in the City of Greendale, Indiana. The $16.8 million, 88-room hotel is slated to open by December 31, 2026, and marks the second Hilton hotel in Dearborn County.
The newly developed Courtyard by Marriott San Bernardino Loma Linda is now open in Loma Linda, California. The new hotel will be operated by Sagemont Hotels. The four-story hotel includes 125 guestrooms, a fitness center, guest laundry, Market, 594 square feet of meeting space and the Bistro restaurant.
Newcrest Image's plans for the AC Hotel by Marriott at Silverlake gained approval by the Grapevine City Council and Planning & Zoning Commission. The Grapevine, Texas, hotel is slated to open in 2029. The five-story AC Hotel by Marriott will offer 200 guestrooms, an outdoor space, outdoor pool, gym, six meeting rooms and a full-service restaurant. The hotel will have 7,000 square feet of event space.
In Coronado, California, the Hotel del Coronado announced the completion of the revitalization of its iconic Victorian building, the final milestone in Blackstone Real Estate's more than $550 million restoration plan to enhance the hotel. The completion of the Victorian Neighborhood encompassed a total restoration of its front porch and lobby, main entry, and drive experience, as well as updates and enhancements to all Victorian guestrooms, the Victorian garden courtyard, event spaces and the addition of two new dining destinations: Nobu Del Coronado and Veranda. Beyond the completion of the Victorian Neighborhood, Blackstone's comprehensive development has also transformed the entire resort including the launch of Serea Coastal Cuisine; the addition of Shore House, part of LXR Hotels & Resorts; Southpoint event center; the debut of the Ocean Club in the historic Windsor Cottage, and a full renovation of Beach Village, LXR Hotels & Resorts. The restoration also introduced revitalized guestrooms in The Cabanas and Views neighborhoods, along with upgrades to other dining venues; a re-imagined Spa & Salon at The Del and expanded Fitness Center; development of the historic Ice House Museum, as well as new meeting spaces and retail experiences at The Shops at The Del.
The completion of the Four Seasons Hotel and Residences Jacksonville has been extended by six months to December 2026. The project will include a 170-room hotel and 26 private residences. Jacksonville Jaguars owner Shahid Rafiq "Shad" Khan is developing the property.
Coury Hospitality has been tapped to take over management of the Hard Rock Hotel San Diego, effective July 1, 2025. Located in the heart of the Gaslamp Quarter, the Hard Rock Hotel boasts 420 guestrooms, 40,000 square feet of meeting and event spaces, a rooftop pool with private cabanas, and several inventive culinary outlets. Alongside the addition of Hard Rock Hotel San Diego, Coury Hospitality is also expanding its portfolio with two new hotel additions and the rebranding of three existing hotels, include: AC Hotel Bentonville, Arkansas, opened in May with 150 guestrooms. The Seahouse Hotel, Tribute Portfolio is set to open this summer as the first Tribute Portfolio lifestyle hotel in Atlantic City, NJ. Featuring 105 guestrooms, it is also Coury Hospitality's first property in New Jersey. Existing property rebrands and renovations in Texas this fall include The Southlake Hotel (Southlake): The Elmore Hotel | Tribute Portfolio. The Beeman Hotel(Dallas): The Mockingbird Hotel | Tribute Portfolio. Marriott Westlake(Westlake): The Ricardo Marriott | $18 million Renovation.
Silverstein Properties, Rush Street Gaming, and Greenwood Gaming and Entertainment announced Hyatt's Destination by Hyatt as the hospitality brand for The Avenir, a mixed-use entertainment complex proposed for Manhattan's Far West Side. The Avenir's luxury hotel will include 1,000 rooms and suites, which will be managed by and branded as The Avenir under The Destination by Hyatt brand. This is all assuming they can get one of the three casino licenses that are expected to be granted by the end of this year.
Procaccianti Companies has obtained all required approvals to develop and construct The Bellevue Hotel, a 91-key luxury boutique property in the heart of Newport, Rhode Island, with an anticipated groundbreaking in Q4 2025. The hotel will be developed and owned by Procaccianti Companies and operated by TPG Hotels & Resorts within the INTERA Collection. The development includes multiple food and beverage venues, spa and wellness facilities, and a range of upscale guest amenities. The plan includes the addition of underground parking to expand the street-level pedestrian experience.
Silverado Resort, in Napa, California, is undergoing a significant revitalization effort. Since acquiring Silverado Resort in 2022, Peregrine Hospitality has committed to preserving the resort's rich history. Over the past two years, the company has invested more than $14 million in improvements. The most recent revitalization is to the resort's guestrooms and suites.
DoveHill announced its preferred equity investment in the redevelopment of a historic hospitality asset in the heart of Savannah, Georgia's Historic District. The project will deliver The Sabal House, a 64-key independent luxury boutique hotel. The investment supports the transformation of the former President's Quarters Inn, currently a 16-key property, into a fully redeveloped and expanded 64-key hotel. A new 42-key wing will be constructed alongside 22 renovated keys in the original structure. The hotel will feature Oak Steakhouse by Indigo Road Hospitality Group.
Hotel Carmichael at Carmel City Center is planning to expand. The luxury hotel, which opened in 2020 through a public-private partnership between the City of Carmel, Indiana, and Pedcor Companies, will grow into the northern half of the adjacent Wren building. The Carmel Redevelopment Commission approved an amended franchise agreement with Marriott, which operates the hotel as part of its Autograph Collection. The expansion will include 60 new guestrooms; a 2,052 square foot ballroom; a new boardroom with a pre-meeting staging area; the expansion of The Adagio Lounge; and the expansion of the kitchen. The ballroom and boardroom will be on the first floor of the building, and the added guestrooms will be on the three stories above it. The expansion is scheduled to start in the fall and be complete by the end of 2026.
Cincinnati's new headquarters hotel will not be completed until June 2028, more than two years after the re-imagined convention center, but the Cincinnati Center City Development Corp. and the hotel developer and owner, Portman Holdings, have a stopgap plan: Buy an existing downtown hotel. The name of the existing hotel being purchased has not yet been disclosed, but Portman expects to close sometime this month. The convention center itself is expected to open in January 2026. Also, as a result of the purchase of the existing hotel, the new hotel will have 100 fewer rooms, 700 instead of 800.
In Florida, Minto Communities USA, The St. Joe Company, and Margaritaville Holdings announced that even more amenities are now open at Latitude Margaritaville Watersound's Latitude Town Square. The new offerings include a Workin' N' Playin Center complex with the Last Mango Theater; The Hangar Workshop; the Barkaritaville Pet Spa; and additional new sports courts, including three more pickleball courts, two tennis courts and three bocce ball courts. The first Latitude Town Square amenities include a terraced amphitheater, thatched roof bandshell, a jumbo screen and a recessed dance floor. A two-story Latitude Bar & Chill restaurant and rooftop Overlook Bar. A massive lagoon-style Paradise Pool has a beach-like gradual entry and its own Tiki Island. Existing property amenities include Fins Up! Fitness Center; the Coconut Telegraph Business Center and the Barkaritaville Dog Park.
The Garden District Hotel announced the opening of New Orleans' first and only swim-up bar at its new pool. The pool has cabanas, space for lawn games and poolside events, and a swim-up bar.
Blackstone is refinancing its Grand Wailea, a Waldorf Astoria Resort, with a $1 billion CMBS loan, according to a pre-sale report from Morningstar and Moody's. The new mortgage loan will retire $800 million of existing debt, returning $181.6 million of equity to the sponsor and covering closing costs. It is a two-year floating-rate, interest-only mortgage loan with three, one-year extension options. The floating rate will be based on one-month SOFR plus the WA Mortgage Loan spread of 2.5%. Blackstone will enter into an interest-rate cap agreement with the assumed SOFR cap of 5% during the initial term.
Voyage Capital Group announced the closing of an acquisition and construction completion loan for the AC Hotel by Marriott located at Denver Gateway Park in Denver, Colorado. The financing was originated by Peachtree Group and includes a strategic capital stack that combines Senior Debt with CPACE financing to support the development and completion of the hotel. The project will feature a seven-story, 146-key AC Hotel. Construction is actively underway, with the property expected to open in late 2026.
Davidson Hospitality Group notified us and sent a press release saying the Margaritaville Hotel Kansas City, developed by Sunflower Development Group in collaboration with Homefield KC and Margaritaville, officially opened its doors on June 18th. We had covered a preview event, saying reservations would be taken beginning July 1. The 228-room hotel is now fully open.
Personnel News
Virgin Hotels Collection and Virgin Limited Edition announced the appointment of Chris Stevens as Chief Operating Officer and Rayhan Arif as Chief Commercial & Financial Officer. Stevens brings a wealth of operational expertise, asset value creation, and nearly 25 years of hospitality leadership to his new role as Chief Operating Officer at Virgin Hotels Collection. Most recently, Stevens served as Senior Vice President of Ashford Inc. Joining as Chief Commercial & Financial Officer, Arif steps into the position with a deep well of strategic, financial, and brand-building expertise cultivated over nearly eight years within the Virgin Group.
Louis Riley has been appointed Regional Vice President - Sales with MCR Hotels. Riley will work with a defined number of properties within the MCR portfolio to assist, support and direct the sales & operational efforts. He will also play an intricate part in the development side for overall successes, representing Corporate, Owner's, Sales, Operations, Revenue Management and F&B at respective properties.
Europe Highlights
Savills, on behalf of RE Capital, has sold the Ruby Stella Hotel in London to LaSalle Investment Management for £48 million. The Ruby Stella Hotel offers 153 en-suite bedrooms and ground-floor shared space, including a restaurant, bar and courtyard terrace.