Long-time hotel developer wants to joint venture with
universities and teaching hospitals and deliver a sustainable,
revenue-generating model that elevates institutional brands.
NEWPORT BEACH, California – Developer A.F. Canta last week
announced the launch of University Hotels, a boutique brand – often with a
private club component – for university and teaching hospital settings focused
on health and wellness and in partnership with the institutions.
One project is in motion, according to the Newport Beach,
California-based developer, but no details are being released. The first
property is expected to open with the Club in Fall 2025, with the hotel to
follow in late Spring 2026. In-house management will be provided by Reliance
Hospitality, Phoenix.
The developers are looking at opportunity zones structured
as joint ventures with universities and hospitals contribute real estate assets
in exchange for equity.
Aileen Canta is the founder and CEO of A.F. Canta. She told
Hotel Investment Today the group has been in the hotel business for 25 years
and has acted as a hotel developer and raised capital for multiple owners. She
said they’ve been behind projects such as the Montage Laguna Beach in
California, the Hard Rock Hotel San Diego in California, the first franchised
property for Nobu, the Snowmass Club Aspen in Colorado, among others.
She began her career in hospitality with Brad Korzen, best
known for developing the adaptive reuse boutique luxury hotel in Beverly Hills
in the late 90s.
Trying to learn more about their plans for University
Hotels, Hotel Investment Today emailed questions to Canta. Here are her
responses:
Hotel Investment Today (HIT): Is A.F. Canta investing its
own capital in properties?
Aileen Canta: Our group of family offices will invest in
University Hotel’s growth, and in most cases, will also serve as the developer.
Through our investment model, universities and hospitals have the opportunity
to become joint venture partners with the developer.
HIT: Where is the first property and how many deals does it
expect to sign before the end of this year?
Canta: While we cannot provide details about pending
contracts at this time, we have a robust pipeline of properties that we are in
conversation with that share University Hotel’s mission to provide a luxury
hospitality experience to university and hospital campuses.
The projected ADR for our flagship property is $312.12 at stabilized year (third year).
Aileen Canta
HIT: What are the development costs?
Canta: Development costs will vary pending assessment of
each university or hospital’s location, ground-up, and adaptive reuse of a
building.
HIT: Are there conversion opportunities or only ground-up?
Canta: We will explore both conversion and ground-up, as
well as adaptive reuse opportunities. We are flexible and our goal is to find
the best option that works for a given property.
HIT: Will Reliance manage all University Hotels or can
developers self-manage?
Canta: Reliance Hospitality will serve as our in-house
management partner. Through our model, A.F. Canta will provide direction and
work closely with Reliance to ensure that University Hotels upholds the highest
standards of the boutique luxury hospitality experience.
HIT: What is the projected ADR for University Hotels?
Canta: As an example, the projected ADR for our flagship
property is $312.12 at stabilized year (third year).
HIT: Will every hotel have a private club and vice versa?
Canta: Each University Hotel location will cater to the
unique needs of its market. For example, if a market is already saturated with
boutique luxury hotels, we may only focus on developing the club and curating a
bespoke experience that best fits with its audience.
HIT: What is your biggest challenge?
Canta: As universities are navigating the current
economic climate, they recognize the potential business benefits of a joint
venture partnership with University Hotels. We both have a shared interest in
maintaining high standards of service and I look forward to growing these
partnerships in the coming months.