Casa Munras

Investment Summary

In December 2012, The Harp Group purchased the historical Casa Munras, located in the heart of Old Town Monterey at the corner of Fremont Street and Munras Avenue, just blocks from the Fisherman’s Wharf. The Casa Munras was originally part of the well-regarded Larkspur Collection, which due to the loss of a key investor, had to quickly sell off its entire portfolio.

The Casa Munras features 170 guest rooms, including 51 upgraded, fireplace-equipped rooms. A variety of room types perfectly accommodate both business and leisure guests coming off the Monterey Peninsula. During the most recent renovation, The Casa Munras added the full-service Sano Spa, offering an extended menu of treatments in four large treatment rooms. The spa also features relaxing alcoves, a soothing ambiance, and a Spa Garden with private hot tub.


  • Aggressively manage rate and operating expenses to improve margins
  • Renovate and reposition the property to satiate the overwhelming demand for ultra high-end lodging accommodations in the Monterey Peninsula
  • Leverage synergies with other Inns of Monterey properties

Table Notes:

  • 170 guest rooms
  • 2,500 SF of Meeting Space
  • Fee Simple, 3.93-Acre Site
  • Date of Acquisition: December 2012
  • Capitalized Value: $21,000,000
  • Leverage Utilized: 53%
  • Equity Investment: $10,000,000
  • Unrealized Value: $20,000,000
  • Underwritten IRR/Equity Multiple: 26.0% / 2.97x

Execution Overview:

  • Began comprehensive renovation process at the property
  • Implemented Inns of Monterey Group affiliation and management to effectively channel demand through Monterey market
  • Increased RevPAR Index by 4.0% during the first 10 months after acquisition