LAGUNA BEACH, Calif. — Tilman Fertitta, the owner of the Houston Rockets, has purchased the Montage Laguna Beach from a China-based insurance firm.
Fertitta didn't disclose the sale price, but a Bloomberg story broke the initial news last week and reported that the multi-billionaire shelled out more than $650 million for the five-star 260-room resort.
At a reported $650 million, the acquisition price would be the second highest-priced hotel sold in California, said Alan Reay, the president at Atlas Hospitality Group, an Orange County-based hotel brokerage firm. In 2014, Strategic Hotels purchased the 757-room Hotel del Coronado from Blackstone & KSL Resorts for $787 million.
"This would make it the second-highest price per room ever paid in California as well as the second-highest price ever paid for a hotel in California," said Reay to Spectrum News. "It shows how strong the market is for Orange County coastal trophy hotels."
China-based Dajia Insurance Group Co., formerly Anbang Insurance Group, has been trying to unload the Montage Laguna Beach and other high-end resorts in their portfolio for several years.
In 2019, Dajia had initially agreed to sell the Montage Laguna Beach, the Ritz Carlton Half Moon Bay, and other U.S. luxury hotels to South Korea-based Mirae Global Asset Investment Co. in a $5.8 billion deal that was set to close a month after the coronavirus pandemic hit in 2020.
However, Mirae backed out, citing the pandemic's effects on the hotel business. Dajia sued to complete the deal, but a Delaware judge sided with Mirae last year.
Fertitta, who owns 14 other hotels, adds to his growing luxury hotel portfolio. Fertitta also owns the Post Oak Hotel in Houston, the San Luis Resort in Galveston, Texas, the Huntting Inn in New York, and five Golden Nugget Casinos and Hotels.
The Montage Laguna Beach at 30801 S. Coast Highway is one of Orange County's trophy resorts.
The 30-acre hotel and resort sits on the coastline in Laguna Beach and overlooks the Pacific Ocean. The resort is one of only six hotel properties to receive Forbes' Triple Five-Star rating.
The resort features two pools, direct beach access, a fine art collection, a state-of-the-art fitness center, a spa and high-end dining.
The resort last sold for $360 million, according to commercial real estate data site Reonomy.
Irvine-based hotelier Montage International will manage the hotel.
"I am truly thrilled to acquire this world-renowned property and add one of America's most iconic trophy resorts to our luxury hotel portfolio," said Fertitta in a news release Monday. "I have been traveling to Laguna Beach for over 30 years. It is one of my favorite places to visit and one of the most beautiful areas in the World. The Montage is a stunning oceanfront property and one of the premier hotel brands in the World."