Private equity firm Blum Capital and the parent of Fairmont Hotels & Resorts are acquiring a majority stake in Carmel Valley’s Grand Del Mar resort for a reported $230 million.
The property’s current owner, local developer and U-T San Diego owner and publisher Douglas Manchester, will retain a minority stake. Fairmont officials said the 249-room resort, which also has eight two-story villas, will be renamed Fairmont Grand Del Mar and will be managed by Fairmont.
U-T San Diego reported that under a deal expected to close April 1, Blum Capital of San Francisco and Toronto-based Fairmont’s parent company, FRHI Hotels & Resorts, will acquire an 88 percent share of the resort, valued at $230 million. Manchester, who opened the resort in 2007 at 5300 Grand Del Mar Ct. near state Route 56, will retain a 12 percent interest.
Manchester’s San Diego-based company, Manchester Financial Group, was founded in 1970 and has developed several hotel and other commercial projects in the local region.
Blum Capital is led by financier Richard Blum, husband of U.S. Sen. Dianne Feinstein, D-Calif. The company partnered last year with Fairmont to acquire Claremont Hotel & Spa in Berkeley.
Blum recently retired after 12 years as chairman of the commercial real estate services company CBRE. Blum Capital’s other major investments have included Northwest Airlines and URS Corp.
In a statement issued by Fairmont, which did not disclose financial terms, Blum said the acquisition of the Grand Del Mar “aligns with our investment strategy” and complements Fairmont’s existing global portfolio of more than 65 luxury hotels.
The Grand Del Mar has received designations including AAA Five Diamond ratings and a Five Star rating from Forbes Travel Guide. The resort also has an 18-hole golf course, a spa and six food and beverage venues including the Addison restaurant, along with 27,000 square feet of meeting space. [[283098621,c]]