A private equity firm in New York City is now the new majority owner of Coronado’s most famous landmark, the .
will own 60 percent of the historical property, it was announced Monday. Strategic Hotels & Resorts will own 34 percent, and KSL Resorts, the company that by contract actually operates the hotel, will own 5.7 percent.
Strategic Hotels, which bought the 757-room property in 2006, was reportedly facing a from its loans. The deadline for repayment was originally set for January and had recently been extended to Feb. 9.
Laurence Geller, CEO of Strategic Hotels, said the transaction will help the company significantly reduce its debt in the property.
"The Hotel del Coronado is an integral part of our portfolio and we welcome Blackstone into the partnership,'' Geller said. "Given the attractive growth characteristics of both the hotel and the San Diego market, we expect to further enhance the hotel's operations and overall value as it returns to, and potentially surpasses, previous peak performance.''
Deutsche Bank provided $425 million in debt financing to recapitalize the hotel, which was appraised at $590 million.
The hotel, which was built in 1888, has hosted 11 U.S. presidents and numerous celebrities over the years.
Read a more detailed account of the deal .
City News Service contributed to this report.