The City of Imperial Beach welcomed a new hotel on June 15, 2020 as the greatly anticipated 100-room "Beach Modern" Hampton Inn opened on a prominent site on State Route 75 at the entrance to the City’s downtown and beachfront communities.  The final phase of the 4.75-acre Breakwater Town Center, the four-story Hilton-branded hotel located at 771 Palm Avenue includes a pool, fitness and business centers, free wi-fi and a breakfast/lounge area. The project is a result of a successful public-private partnership (P3) between the City and Sudberry Development (Developer).  KMA provided real estate advisory services to the City related to the P3 transaction, quantifying the necessary public assistance required for the project to be financially feasible, and completing the required Economic Development Subsidy Report outlining the negotiated Transient Occupancy Tax (TOT) sharing agreement between the parties. As part of these analyses, KMA:  projected tax revenues to the City; evaluated the Developer's rate of return relative to hotel industry standard; and assessed the potential financial impact of the proposed land use change as part of an amendment to the original Purchase and Sale Agreement between the City and Developer.

Despite the challenges associated with the COVID-19 pandemic, the hotel is adapting its operations in the near-term to provide safe and convenient lodging to diverse market segments.  Community leaders are excited for the completed development to energize the City’s main commercial corridor while serving as a gateway to downtown and beachfront.  The mayor of Imperial Beach, Serge Dedina, had this to say:  “Not only will this landmark, beautiful new hotel be an invaluable resource for visitors, but it will have a major positive economic impact on our community".