A Utah-based real estate investment and asset management firm recently bought two hotel properties in the Anaheim area from a hospitality group managed by Mike Patel.
Dynamic City Capital purchased SpringHill Suites at 1801 S. Harbor Blvd. and Residence Inn at 640 W. Katella Ave. from Newport Beach-based T2 Hospitality in a two-property deal last month.
The two hotels, which are Marriott properties, were sold to Dynamic City Capital for $303 million, according to CoStar and public records.
Both hotel properties are located near the Disneyland Resort and Anaheim Convention Center, an area that has numerous hotel properties on Harbor Boulevard and Katella Avenue.
Dynamic City Capital b
ought the two Marriott properties for about $647,435 per room, based on the purchase price reported by CoStar News. Neither Dynamic City Capital nor T2 Hospitality responded to the Business Journal’s request for comment. A Marcus & Millichap hospitality report, published in mid-2024, found the average price per room sold for Orange County hotel properties jumped from a little more than $250,000 in 2020 to nearly $350,000 in 2024.
The Residence Inn property opened in August 2016 and has 294 rooms in a nine-floor, 202,759-square-foot building. SpringHill Suites debuted in October 2014 and features 174 rooms across five floors and nearly 122,500 square feet.
Almost three years ago, Dynamic City Capital also bought the Anaheim Portofino Inn & Suites, located near the Disneyland Resort.
The real estate investment and asset management firm opened its first hotel – a Marriott franchise – in Provo, Utah, in 1991.
Dynamic City, whose managing partner is Joel Sybrowsky, invests in the western U.S. in asset classes like hospitality, multi-family, self-storage and retail.
Dynamic City Capital’s portfolio currently includes an AC Hotel by Marriott in Fort Lauderdale Beach, Hyatt Place in downtown San Francisco, Hilton Garden Inn in central San Diego and Element Anaheim Resort Convention Center.
The Tarsadia Connection
Tarsadia Hotels was founded in 1976 by BU Patel and his sons, Mike Patel and Tushar Patel, when they purchased the Dunes Motel in Anaheim along with eight other motel properties in Southern California.
At the age of 23, Mike Patel developed his first ground-up hotel, the San Clemente Travelodge. Mike Patel changed the company name to T2 and became its chief executive.
Mike Patel describes his specialty as “turning around underperforming hotels and knowing how to select the right location for new build opportunities,” according to the company’s webpage.
T2 nowadays has more than 10 hotels and two under development, four senior housing facilities and five entitled sites for future development, a ground-up office development and a portfolio of non-real estate venture capital investments.
Its portfolio includes Tetra Hotel in Sunnyvale, Homewood Suites Hotel Circle in San Diego, Laguna Brisas Hotel in Laguna Beach, Doubletree Golf Resort in Palm Springs and an AC Hotels by Marriott in Palo Alto.
Brother Tushar Patel founded the separately managed Tarsadia Investments LLC, which is a single-family office with more than $2 billion in assets under management. It has 28 portfolio companies and typically invests $5 million to $75 million in technology areas of health, hotels and finance.
Other Recent Hotel Transactions
An Embassy Suites in Santa Ana changed hands for $41 million in October and a DoubleTree by Hilton Suites Anaheim Resort Convention Center was sold for $62 million in 2023.
Billionaire Tillman Fertitta, who owns the NBA’s Houston Rockets and Morton’s The Steakhouse, bought Montage Laguna Beach in late 2022. Fertitta, the presumptive nominee to be the U.S. Ambassador to Italy, did not disclose how much he paid for the Montage property, but multiple news reports said the billionaire swooped the high-end hotel property with 260 rooms for $650 million.
CORRECTIONS:
In the Dec. 23 issue, we made errors in two articles.
The story on Related California proposing two high-rise condominium towers incorrectly said Irvine Co. owned the land sites.
A corporate box on Farmers & Merchants Bank incorrectly identified Dan Walker as CEO and W. Henry Walker as President. It should have said Dan Walker is Executive Chairman, W. Henry Walker is CEO and Kevin Tiber is President.
The online articles have been corrected.
