The Offering
Descanso Resort
A rare, turnkey opportunity to acquire both the fee-simple real estate and the fully operational business of Descanso Resort, a premier 16-room luxury boutique gay men's resort in the heart of Palm Springs. Completely renovated top to bottom prior to its January 2022 reopening, the ±9,110 SF property sits on ±16,553 SF of fully fenced grounds with a heated saltwater pool, outdoor spa, and close-up San Jacinto Mountain views. Since reopening, Descanso has earned TripAdvisor's Travelers' Choice "Best of the Best" award — placing it among fewer than 1% of listings worldwide — with proven in-place cash flow, an 82.4% average occupancy, and a $285.33 ADR in one of Southern California's most supply-constrained hospitality markets.
Investment Highlights
- 8.11% cap rate on in-place operations — $400,000 per room
- Fee-simple real estate + fully operational, award-winning business
- 82.4% average occupancy and $285.33 ADR with room to grow
- TripAdvisor Travelers' Choice "Best of the Best" — top 1% worldwide
- Complete top-to-bottom renovation prior to January 2022 reopening
- Heated saltwater pool, spa, and 101-panel rooftop solar (46.46 kW)
- ±$70K/year transferable city occupancy tax rebate (5 years remaining)
