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754 E San Lorenzo RdPalm Springs, CA 92264
A Place In The Sun Hotel - Palm Springs
Asset ClassHotel & Hospitality
Deal Size$5.85 M
Asking Price $5,850,000
overview of deal

Overview

A Place In The Sun Garden Hotel | Palm Springs, California

Premier Desert Leisure Market | Western U.S.

Avison Young is pleased to present to a select group of investors the opportunity to acquire A Place In The Sun Garden Hotel, a highly profitable boutique resort property located in the heart of Palm Springs, California—one of the premier desert leisure destinations in the Western United States.

 

Originally developed during Palm Springs’ iconic Hollywood-era expansion, the property maintains a direct connection to the city’s celebrated mid-century resort heritage. The hotel’s intimate scale, resort-style courtyard layout, central pool experience, and surrounding San Jacinto Mountain views create an authentic boutique hospitality environment that aligns directly with evolving traveler preferences toward experiential, independent accommodations.

 

The property consists of a sub-25-key boutique resort configuration organized around a private landscaped pool courtyard, offering guests a highly curated and secluded desert retreat experience. Its efficient physical layout supports a lean operational model with minimal staffing requirements while maintaining the strong operating margins commonly associated with successful boutique leisure assets in high-barrier resort markets.

 

From an investment perspective, the opportunity offers an attractive double-digit in-place capitalization rate with pricing metrics consistent with boutique resort transactions throughout premier Western leisure destinations. Current operations demonstrate strong yield on total project cost, with additional upside potential achievable through operational optimization, strategic repositioning, and ancillary revenue initiatives.

 

Upside & Optionality

Immediate value-add opportunities include:

  • Conversion of existing manager’s apartments into revenue-generating guest accommodations
  • Introduction of wine, beer, and limited food service offerings
  • Rate optimization strategies consistent with comparable boutique assets in the region

Additionally, the property benefits from flexible resort zoning, allowing for potential future redevelopment, increased density, or multifamily reconfiguration subject to local approvals. In supply-constrained leisure markets with steady year-round demand, this zoning flexibility provides multiple exit strategies and long-term appreciation potential.

 

With sustained leisure demand, limited boutique supply, and conservative exit assumptions, the Small Historic Boutique Hotel offers both compelling current income and credible long-term value growth.

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Investment Highlights

  • Historic boutique hotel with authentic entertainment-era provenance
  • Intimate sub-25-key all-suite configuration
  • Resort-style layout centered around pool courtyard with mountain views
  • Highly efficient operating model producing strong NOI margins
  • Immediate value-add through unit conversion and ancillary revenue
  • Located in a premier Western U.S. desert leisure market
  • Flexible resort zoning allowing redevelopment or multifamily potential
  • Attractive in-place yield with projected NOI growth
  • Limited boutique supply in high-barrier entry market
  • Multiple exit strategies with long-term appreciation upside
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