Korean Investor Buys Fairmont San Francisco

The Fairmont San Francisco is sold to Korean Investor for $450 million.

The $450 million deal for the Fairmont San Francisco is the most recent high-profile hotel purchase in the city. Ownership of the hotel changed hands from Woodridge Capital Partners LLC, and Oaktree Capital Management, who had previously acquired the hotel in 2012, to the South Korean based financial company, Mirae Global Investments. The hotel has been an integral part of the city's history for over 100 years. Designed by the New York based architectural firm, McKim, Mead & White and Julia Morgan, the hotel opened in 1907. Woodridge Capital Partners LLC, and Oaktree Capital Management acquired the Fairmont San Francisco for $200 million, and spent an additional $20 million dollars on renovations. With 592 rooms at the hotel, the current value of each room stands at $760,000. It's no surprise that Woodridge Capital Partners LLC, and Oaktree Capital Management have sold the historic Fairmont San Francisco. There has been a recent wave of hotel sales throughout the city as business travel and tourism in San Francisco have become increasingly popular.  Recent tourism reports indicate that the city received 18 million visitors which have increased the city's tourism revenue. It's estimated that revenue in 2014 is up by 13.7% from 2013. More demand for hotel properties coupled with limited supply, has created a strong market for hospitality properties in San Francisco. It's not uncommon for hotels to cost more than $1 million per room to build, which has created a greater demand for existing properties.  The Mandarin Oriental San Francisco and the Epiphany hotel in Palo Alto have also recently sold under record-breaking transactions, exceeding the $450 million purchase of the Fairmont San Francisco. The Nob Hill centered hotel will continue its operations under Fairmont Hotels & Resorts, as Mirae Global Investments has agreed to a long-term management plan. The San Francisco hotel market is growing. Renovate your commercial real estate with hospitality construction services from Parkwest General Contractors. Contact us for more information.