• News
  • SAN DIEGO
  • Hospitality

Kona Kai leasehold changes hands

The leasehold of the 129-room Kona Kai Resort on Shelter Island has reportedly been transferred to a Noble House & Resorts entity known as Westgroup Kona Kai LLC.

Seattle-based Noble House, which already holds the majority of the leasehold on the adjacent 514-slip Kona Kai Marina, plans to spend $5.3 million for an extensive renovation, before spending another $9.1 million to add 45 new rooms to the property. The hotel owner/developer plans to take out a maximum $11.4 million Columbia Bank loan to help pay for the improvements.

Under the terms of Noble House’s contract with the San Diego Unified Port District, the Seattle firm will be able to operate the asset for the next 35 years -- with an option that would increase the term to 50 years.

Noble House, which acquired the leasehold from an Atlas Hotels entity, will be required to pay a percentage of sales tax and room receipts based on a complicated multiyear formula.

The minimum lease rate (not counting required percentages on room revenues and sales tax receipts) starts at $452,260 in the first year and climbs to $620,000 by the fourth year.

The leaseholds of the 129-room Kona Kai Resort Hotel with its 512 parking spaces at 1551 Shelter Island Drive, and the marina are expected to be combined in the near future.

Leave Your Comment

Comments are moderated by SDDT, in accordance with the SDDT Comment Policy, and may not appear on this commentary until they have been reviewed and deemed appropriate for posting. Also, due to the volume of comments we receive, not all comments will be posted.

SDDT Comment Policy: SDDT encourages you to add a comment to this discussion. You may not post any unlawful, threatening, defamatory, obscene, pornographic or other material that would violate the law. All comments should be relevant to the topic and remain respectful of other authors and commenters. You are solely responsible for your own comments, the consequences of posting those comments, and the consequences of any reliance by you on the comments of others. By submitting your comment, you hereby give SDDT the right, but not the obligation, to post, air, edit, exhibit, telecast, cablecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comment(s) and accompanying personal identifying and other information you provide via all forms of media now known or hereafter devised, worldwide, in perpetuity. SDDT Privacy Statement.

User Response
0 UserComments

Leave Your Comment

Comments are moderated by SDDT, in accordance with the SDDT Comment Policy, and may not appear on this commentary until they have been reviewed and deemed appropriate for posting. Also, due to the volume of comments we receive, not all comments will be posted.

SDDT Comment Policy: SDDT encourages you to add a comment to this discussion. You may not post any unlawful, threatening, defamatory, obscene, pornographic or other material that would violate the law. All comments should be relevant to the topic and remain respectful of other authors and commenters. You are solely responsible for your own comments, the consequences of posting those comments, and the consequences of any reliance by you on the comments of others. By submitting your comment, you hereby give SDDT the right, but not the obligation, to post, air, edit, exhibit, telecast, cablecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comment(s) and accompanying personal identifying and other information you provide via all forms of media now known or hereafter devised, worldwide, in perpetuity. SDDT Privacy Statement.

Subscribe Today!