Newport resorts get luxury headliner

Andrew Edwards

Since last week, a 444-room Newport Beach hotel has a new owner, new

management and is on its way to having a new look.

The Sutton Place Hotel on MacArthur Boulevard is in the middle of

Newport Beach’s business zone near John Wayne Airport. Sunstone Hotel

Investors, Inc., a San Clemente firm, announced the closure of its

$72-million purchase of the hotel last week. Toronto-based Fairmont

Hotels & Resorts has taken over the job of running the hotel.

The hotel is a bit of a drive from Newport’s resort hotels near

the ocean. Still, a multimillion-dollar renovation effort is on tap

to increase the hotel’s luxury factor.

“We want to take it that one next step up,” new general manager

Randy Zupanski said.

Sunstone Hotels also owns the Hyatt Regency Newport Beach. A

$13-million renovation project was completed earlier at that hotel.

The firm intends to spend more money updating Sutton Place, and has

announced plans for a $22-million makeover for its new acquisition.

Early next year, the Sunstone Hotels expects to change Sutton Place’s

name to the Fairmont Newport Beach.

Sunstone Hotels’ actions seem to fit a broader trend of large

Newport Beach hotels moving to freshen up their image. The Four

Seasons Hotel Newport Beach added a spa in January. The Newport Beach

Marriott is in the middle of a major project that is expected to be

finished in December. After a reported $60 million worth of

renovations are ready, that hotel is slated to change its name to

Newport Beach Marriott Hotel & Spa.

In addition to those makeovers, a new resort is expected to become

a part of the coastal hotel scene when the Irvine Co. completes the

Pelican Hill at Newport Coast hotel. Major construction is set to

begin in September, and the Irvine Co. anticipates a 2008 opening.

Planned additions to the hotel include increased office facilities

for business travelers and a new spa, bar and club, Zupanski said.

The idea behind the new leisure amenities is to add more business on

the weekend.

Cosmetic changes will include updated rooms and a redesign for the

lobby.

“This whole lobby, all this is going to be removed and replaced by

marble,” Zupanski said as he walked across the lobby’s tile floor

Thursday.

Marta Hayden, Newport Beach Conference & Visitors Bureau executive

director, has voiced her enthusiasm for Sutton Place’s planned

transformation since Sunstone Hotels announced its intention to buy

the hotel in April. Two hospitality professionals outside Newport,

including Alan Reay, president of Costa Mesa hotel brokerage Atlas

Hospitality Services, gave positive reviews to Sunstone’s plans. Reay

compared Fairmont’s name recognition to luxury brands like

Ritz-Carlton and Four Seasons.

“I think it bodes well for the community of Newport Beach to have

a trophy property in the heart of Orange County,” Reay said.

Currently, Reay believes Sutton Place has a definite need for an

update.

“It is a little bit tired-looking,” he said.

Local hotel rate statistics were released earlier this month by

PKF Consulting. The numbers showed the average cost to spend a night

in a Newport Beach hotel in May was $151.19. Jeff Lugosi, a senior

vice president at PKF’s Los Angeles office, agreed with Reay that

Sutton Place needs work to better compete with other hotels. He also

said a successful renovation could push local rates higher.

“Obviously, with the addition of the Fairmont that rate would go

up,” Lugosi said.