A proposed 24-year lease extension for the owners of the Hilton La Jolla Torrey Pines was granted initial approval Wednesday by the San Diego City Council’s Smart Growth and Land Use Committee.
The 394-room hotel sits on city-owned land overlooking the Torrey Pines Golf Course.
The extension, if approved by the full City Council at a later date, would bring the lease with CHH Torrey Pines Hotel Partners to a full 50 years, expiring in 2067. The agreement includes options for an additional 10 or 20 years if certain conditions are met.
According to city documents, CHH and Hilton have invested around $22 million over the last decade to improve the 28-year-old facility. The longer term will allow CHH to pursue financing for additional improvements, city officials said.
Annual rent was projected by the city to be in the area of $3.2 million to $3.4 million over the next few years. The deal also calls for CHH to make a lump sum payment of $500,000 to the city within a month of when it takes effect.
–City News Service
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