Private Equity Firm Buys La Costa Resort and Spa

A private equity firm with ties to the La Costa Resort and Spa has acquired the Carlsbad, Calif. property in a move that may signal a revival of the once highly regarded hotel, reports the San Diego Union-Tribune.

KSL Capital Partners, which only recently purchased nearly $400 million in debt on the property for a steeply discounted price, will now take over ownership of La Costa, the resort announced yesterday. The new owners say they plan to make major improvements to the property, including upgrades to the guest rooms, spa, restaurants, pools, meeting space and golf courses.

The acquisition by KSL will return ownership of the resort to some of the same individuals previously affiliated with the former KSL Recreation Corp., which purchased the property in 2001 from its then Japanese owners, Sports Shinko.

KSL Capital Partners is taking over ownership of La Costa from Goldman Sachs affiliate Whitehall Street Global Real Estate Limited Partnership, which purchased the resort in 2007 at a time when luxury hotel properties were worth far more than they are in today’s depressed market.

Tags: KSL Capital Partners La Costa Resort and Spa