Two Hotels Near Disneyland Sell for $207M

A pair of hotels in Orange County, Calif., have traded hands for nine figures in one of the biggest hospitality deals in Southern California in 2024. 

Dynamic City Capital, a Utah-based investment firm, paid a combined $207.3 million for the SpringHill Suites and Residence Inn in Anaheim from hotel developer and operator T2 Hospitality, records show. CoStar first reported the news. 

The hotels are both adjacent to each other, and just south of Disneyland. The SpringHill Suites, built in 2014, is a five-story, 174-key hotel at 1801 South Harbor Boulevard, and it sold for just $28 million. The 8-year-old Residence Inn is a nine-story, 294-key property at 640 West Katella Avenue, and it traded for $179.3 million. The combined $207.3 million purchase price for both hotels breaks down to almost $443,000 per key. 

Representatives for Dynamic City and for T2 did not immediately respond to requests for comment. 

Dynamic City is building up a solid stable of hotels near Disneyland, and it isn’t afraid to pay top dollar. In 2022, the firm bought the Portofino Inn & Suites — not far from its new SpringHill Suites and Residence Inn properties — and paid $57.5 million, significantly more than the property’s $26 million trustee sale in 2018. The firm also acquired the Element Anaheim Resort in 2021 for $64.7 million.

Although its official position on 2024’s leaderboard is unclear, the deal was likely among the largest, if not the largest, hotel sales in Orange County last year. Other notable sales in the region include startup Dune Drifter’s $80 million acquisition of the 125-key Pacific Edge Hotel in Laguna Beach in August. In November, MHG Capital purchased the 301-key Embassy Suites in Santa Ana for $41 million. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.