- Shutters on the Beach and Casa del Mar, two iconic hotels in Santa Monica, are valued at $700M, with an additional $100M in adjacent land potentially adding to the total deal.
- The Slatkin brothers are working with Eastdil Secured on a capital raise, marking a step to develop 350 branded residences next to the hotels.
- In line with rising real estate trends, the hotels could fetch over $2M per room, as other high-end California hotels have recently sold at similar rates.
- Hotel operations will remain unchanged, but the added residences signal significant long-term growth potential for the properties.
The Slatkin brothers, owners of two celebrated Santa Monica luxury hotels, Shutters on the Beach and Casa del Mar, are exploring a capital raise to unlock additional value from their properties.
The projected raise could boost the combined valuation of both hotels to $700M, with the possibility of further capitalizing on adjacent land worth $100M, per Bloomberg.
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Behind The Valuation
According to Thomas Slatkin, this is not a sale but a strategic step to unlock long-term value through the development of branded residences.
The Slatkins acquired Shutters in the early ’90s and Casa del Mar shortly after, transforming them into iconic properties with Hollywood allure. The new project will feature over 350 residences integrated with the hotels, although day-to-day operations will remain unaffected.
If everything goes as planned, Shutters on the Beach and Casa del Mar could cross the $2M per room threshold, a benchmark that’s been set by other high-profile hotel deals in California, like the 2021 sale of Alila Ventana Big Sur.
High Coastal Demand
The market for premium coastal properties is looking really good. In 2024, the combined value of Shutters and Casa del Mar was appraised at $605M in refinancing, and the new project only adds to the allure of Santa Monica’s prized beachfront.
James Cole of Ohana Real Estate Investors, which has sold luxury hotels like the Montage Healdsburg, believes the coastal Cali real estate market continues to offer attractive valuations.
