HOTELS: Local investor Soul Community Planet buys Laguna Riviera Beach Resort

Local hotel owner and operator Soul Community Planet (SCP) has made its first acquisition in California, paying $24.3 million for the oceanfront Laguna Riviera Beach Resort along South Coast Highway.

The local purchase brings its portfolio to six assets, with another acquisition in the works nearby in Laguna Beach.

“We see Laguna Beach as an ideal place for Soul Community Planet, and we look forward to merging SCP’s holistic hospitality with Laguna Beach’s cool California vibe,” said SCP co-founder and CEO Ken Cruse.

The hospitality company was launched in 2018 by Kruse, the former CEO of Sunstone Hotel Investors. SCP formed San Juan Capistrano-based investment offshoot SCP Hospitality at the end of 2020 with a goal of deploying nearly $500 million in new hotel investments over the next several years, with Soul Community Planet overseeing branding and management of these properties.

Renovations Planned

SCP acquired the 41-room Riviera hotel— located south of the city’s downtown, near Thalia Street—for nearly $593,000 per room, according to property records.

It was sold by an affiliate of Ferrado Group, a Spain-based hospitality-focused real estate investment group that paid about $21 million for the hotel in 2018.

The new owners plan to invest about $8 million into the hotel, which first opened in 1948.

Renovations will be in line with the SCP brand, which focuses on eco-friendly amenities and wellness components. Guestrooms will be converted with an “eco/surf lodge standard,” using reclaimed materials in white and other natural colors, adding local art, meditation pillows and yoga mats while removing televisions and clocks to adhere to SCP “Peaceful Room” standards. Design will be led by Kelly Ogden of ELK Collective.

The hotel will be rebranded as the SCP Laguna Beach upon completion; opening rates will start at $250 per night.

“Our planned renovations of the hotel are intended to complement the character of Laguna Beach and will be thoughtfully conducted with city and community involvement every step of the way to ensure our efforts add to, rather than dilute, the eclectic authenticity that makes Laguna Beach so special,” Cruse said.

Expansion Push

SCP opened its first location in 2018 with SCP Colorado Springs. It has since expanded to SCP Redmond and SCP Depoe Bay, both in the Pacific Northwest; Hilo, Hawaii; and most recently, the Salishan Coastal Lodge by SCP in Gleneden Beach, Ore.

The company has a goal of acquiring about 20 additional locations by the end of 2023. ■