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32025794
32025845

1404 N COAST HWY, LAGUNA BEACH, CA 92651-1341

JM
CA 01720503
Atlas Hospitality Group
OS
CA 01209474
Atlas Hospitality Group
Listed by Atlas Hospitality Group
$10,495,000
38 days on market
Updated 38 days ago

Costa Art Hotel Laguna Beach

Details
APN 053-122-28
Property Type Hospitality
Sub Type Hotel
Square Footage 20,653
Units 28
Cap Rate 4.97%
NOI $521,923
Occupancy 63%
Pro-Forma Cap Rate 5.91%
Pro-Forma NOI $620,753
Price per SqFt $508
Year Built 1992
Year Renovated 2018, 2024
Stories 3
Lot Size (SqFt) 15,351
Parking Spaces 28 spaces
Parking Per SqFt 1.36
Investment Type Value Add
Ground Lease No

Coastal Orange County Boutique Offering

Marketing description

Atlas Hospitality Group is pleased to present the Costa Art Hotel in Laguna Beach, an exceptional boutique property offering both stability and upside in one of California’s most supply-constrained coastal markets.

Located steps from Crescent Bay Beach, the hotel provides guests immediate access to the shoreline while maintaining a quiet, neighborhood atmosphere away from the busier tourist corridors. With its art-inspired design, pet-friendly amenities, and walkable location, the Costa Art Hotel stands out as a unique alternative to larger branded hotels.

The property benefits from Laguna Beach’s enduring popularity as a seaside destination, consistently attracting visitors seeking intimate, high-quality accommodations. With strong seasonal peaks complemented by steady off-season visitation, investors are presented with a rare opportunity to acquire a turnkey asset in a market with high barriers to entry and virtually zero hotel development.

Investment highlights

PREMIER COASTAL LOCATION: Steps from Crescent Bay Beach and minutes from downtown Laguna Beach’s shops, galleries, and dining.

UNTAPPED REVENUE STREAMS: Recently secured Type 66 (complimentary tastings for marketing) and Type 70 licenses (on-premise and select off-premise alcohol sales) unlock new opportunities, with pool bar activation and package integration projected to contribute over $100K annually — without expanding the existing footprint.

HIGH BARRIERS TO ENTRY: Strict zoning and limited new development protect long-term rate and occupancy growth.

F&B EXPANSION OPPORTUNITY: Existing 1BR/1BA unit provides a turnkey opportunity to expand F&B offerings. With modest renovation, the space could be repurposed into a wine and beer lounge with integrated pool bar service. .

RECENT RENOVATIONS DRIVING PERFORMANCE: Following comprehensive renovations in 2019 and 2024, the property has achieved RevPAR growth of over 42%. Despite this strong momentum, performance continues to trail the competitive set, offering substantial upside potential.

Listing Contacts

JM
CA 01720503
Atlas Hospitality Group
OS
CA 01209474
Atlas Hospitality Group
Listed by Atlas Hospitality Group

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Loan Amount
$0.00
Annual Debt Service
$--
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Annual Cash Flow
$521,923.00
$43,493.58/mo

Valuation Metrics

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DSCR
4.97%
Cap Rate
4.97%
ROI

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