Colliers has arranged the sale of the Franciscan Inn & Suites, a 53-room boutique hotel located in Santa Barbara’s West Beach district. The property was sold by local developer Ed St. George, who acquired the hotel in 2022 for $21,000,000. The buyer is Warren Resort Hotels, a family-owned hotel ownership and management company, which purchased the asset for $22,500,000 at just under a 4% cap rate on current income.
The Franciscan Inn & Suites is situated in Santa Barbara’s coastal West Beach neighborhood, a location that benefits from proximity to the waterfront and the city’s broader positioning as an upscale resort destination. The asset has changed hands relatively quickly, with St. George holding the property for only a few years before executing this disposition.
For Warren Resort Hotels, the acquisition carries both strategic and family significance. Chris Warren, a third-generation member of the Warren family, noted that adding The Franciscan Inn & Suites Santa Barbara to the company’s portfolio fulfills a long-held objective for the group. He also highlighted the timing, pointing out that the closing comes 50 years after his grandfather, George H. Warren, purchased the Marina Beach Motel, which is located next to the Franciscan.
The transaction was marketed and led by a Colliers and Radius team working with both parties. Colliers’ executive vice president Austin Herlihy, vice presidents Chris Parker, Miles Waters and Mike Lopus, and associate Mike Chung partnered with Radius principal and founder Steve Golis to oversee the disposition and acquisition processes. Their role included positioning the asset and coordinating the sale between the seller and the family-run buyer.
Commenting on the broader hospitality backdrop, Herlihy observed that Santa Barbara’s hotel sector continues to benefit from high barriers to entry and coastal zoning protections. He added that the city’s established reputation as an upscale resort destination supports investor interest and underpins performance for well-located boutique assets such as the Franciscan Inn & Suites.
The sale underscores ongoing investor appetite for coastal boutique hotels in Santa Barbara, particularly those with established operating histories and adjacency to other family-owned hospitality holdings. While detailed operating metrics were not disclosed, the sub-4% cap rate on current income reflects strong pricing for the asset in the current market environment.
