Billionaire Tilman Fertitta reportedly considering $650-million purchase of the

A Laguna Beach luxury resort could soon have new ownership, as reports have surfaced indicating that billionaire Tilman Fertitta has shown interest in acquiring the Montage Laguna Beach.

The resort is owned by China-based Dajia Insurance Group Co., which has asked for as much as $700 million for the sale of the South Laguna hotel located at 30801 S. Coast Highway, according to the Orange County Business Journal.

Bloomberg News reported that Fertitta is on the cusp of a $650-million deal to purchase the Montage, citing sources familiar with the situation who spoke on the condition of anonymity due to the private nature of the discussions.

A 30-acre beachfront property that overlooks the Pacific Ocean from a coastal bluff, the Montage has 260 guestrooms, a hotel spokesperson confirmed. The resort opened its doors in 2003.

The reported purchase price of $650 million would bring the price tag to $2.5 million per room. Alan Reay, the president of Atlas Hospitality Group in Newport Beach, described the Montage as “irreplaceable” oceanfront real estate and said the price-per-room average would rank second among hotel sales in state history. In November, the 59-room Alila Ventana Inn and Spa in Big Sur fetched $2,542,373 per room, according to Atlas’ year-end hotel survey.

Reay added that the market surprised many with its bounce back the year following the coronavirus outbreak.

“It was a record year last year,” Reay said. “There were 13 transactions in California that were above $1 million per room, [and five] were above $2 million per room.

“We had the highest dollar volume. … I don’t think anyone predicted what 2021 was going to be like in terms of prices, in terms of dollar volume, and the appreciation that we’re seeing on coastal hotels has been phenomenal.”

There are three restaurants on site at the Montage that go by the names of Studio, the Loft, and Mosaic Bar and Grille. In addition, the resort is home to a 20,000-square-foot spa and two outdoor pool decks.

Fertitta is the owner of the Houston Rockets basketball franchise and Landry’s, a major player in the dining and hospitality industry. Restaurants such as Bubba Gump Shrimp, Claim Jumper, Joe’s Crab Shack, McCormick and Schmick’s, Morton’s and Rainforest Café are among the numerous eateries under the Landry’s banner.

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