November 9, 2021 — The Port of San Diego Board of Port Commissioners has granted concept approval for a 450-room hotel development by Sunroad HIE Hotel Partners, L.P. and has also authorized the issuance of a Coastal Development Permit for the project. The area for Sunroad’s development includes what is known as the Elbow Parcel, approximately 7.55 acres in the shape of an elbow at 851 Harbor Island Drive in San Diego at the northeast corner of Harbor Island Drive and East Harbor Island Drive west of Safe Harbor Sunroad Marina.

“A thriving San Diego Bay waterfront is one of our region’s biggest assets and is a benefit to San Diegans and all Californians,” said Port of San Diego Board of Port Commissioners Chairman Michael Zucchet. “One way the Port works towards maximizing our bayfront is by ensuring we tap into the land’s full potential. Sunroad’s hotel project will not only be a great addition and attraction for visitors, but it will also offer a variety of activities for locals and add to the offerings that already exist on East Harbor Island – several fantastic restaurants, unbeatable coastal access, beautiful views, and proximity to San Diego International Airport.”

“We are very excited to move forward with this project,” said President of Sunroad Holding Corp. Uri Feldman.

Sunroad’s project is anticipated to break ground in late 2023 and could open, based on the current estimated timeline, by late 2025. Sunroad’s development consists of a 450-room hotel with two yet-to-be-determined brands: a 12-level wing with extended stay rooms and a 15-level wing with limited-service rooms. Amenities open to the public would include a walk-up restaurant and bar area accessible via the sidewalk on Harbor Island Drive, designated public parking spaces, a 15-foot-wide waterfront promenade, and temporary and permanent mini destinations to draw people to and through the hotel and amenities by creating various activating uses, such as artwork, benches, mobile carts for retail/specialty items and/or food and game/exercise spots. Amenities for hotel guests include an outdoor swimming pool with a jacuzzi spa and outdoor private function space, a fitness center, retail shops, and meeting rooms and ballrooms.

The Port Board selected Sunroad to develop the Elbow Parcel in September 2016. In April 2021, the Board granted Sunroad an Option to Lease Agreement (Option) for a 66-year lease, which requires Sunroad to invest a minimum of $153 million into the hotel project. The Option includes conditions precedent that Sunroad is required to meet within a specific timeline prior to exercising the Option and executing the Lease.