A new hospitality investment opportunity in the form of a recently built Hotel Gigi has hit the market in San Diego’s Gaslamp district. According to the marketing materials by the Nevarez Group of Marcus & Millichap, which has the offering, the 20-room hotel spans 9,000 square feet and is located on around 0.1 acres of land at 547-549 Ninth Ave. The listed price is $8 million, or $400,000 per key. The property owner is an entity that shares an address with Diestro, Inc., according to public records.
The marketing materials show that the two-story single building hotel was built in 2022 and features modern amenities that ensure contemporary charm and comfort. The hotel is presently achieving an occupancy rate of 78 percent resulting in a net operating income of about $770,000 per year. The property currently has a cap rate of 9.96 percent.
One of the future features of Hotel Gigi is the soon-to-be-completed 1,800 square foot restaurant, presenting an opportunity for the new owner to infuse their culinary vision or lease it to an operator, adding another revenue stream to the business.
Hotel Gigi is located within walking distance to Petco Park, numerous restaurants and major attractions of the Gaslamp Quarter. Its proximity to iconic San Diego landmarks such as the San Diego Zoo, Sea World and the Children’s Museum, as well as the San Diego International Airport, ensures a steady flow of visitors year-round.
As recently indicated by market news, downtown San Diego is seeing renewed investor interest in the hospitality sector. As The Registry recently reported, a new development is taking shape in San Diego’s Little Italy neighborhood, spearheaded by Consortium Holdings Projects, the hospitality group renowned for revitalizing the Lafayette Hotel. CH Projects is embarking on their first ground-up creation with a boutique hotel and wellness center named Dreamboat. The project will feature a wellness center, a rooftop garden and two restaurants, and will also serve as the new corporate headquarters for CH Projects, further solidifying their presence in Little Italy.
