Investment Overview

Marcus & Millichap has been chosen to exclusively market for sale The Paloma Resort, a boutique independent property located in Cathedral City, California (bordering Palm Springs, CA). The offering includes the onsite Sol y Sombra restaurant and an adjacent 2.07-acre vacant land parcel with pickleball court and meadow, lawned event space (approx. 4,000 sf), and overflow parking. The property consists of 63 rooms across multiple buildings, including five buildings consisting of 35 units and a newer 28-unit building completed in 2020. Accommodations range from studio villas with private patios and fire pits to one-bedroom suites with living areas and balconies. The asset is in excellent condition and presents potential for conversion to a Tribute Portfolio by Marriott or one of the other available luxury or upper upscale boutique brands. The Paloma Resort offers a variety of amenities, including a fitness center, bocce court, and multiple event spaces such as the 1,700-square-foot Date Palm venue and the 500-square-foot Poolside Citrus Suite, as well as a resort-style pool with bar, hot tub, and four cabanas. Sol y Sombra, located in a historic adobe building, operates Tuesday through Sunday with seasonal entertainment and features a full commercial kitchen with walk-in refrigerator and pantry; the space can also accommodate approximately 1,500 square feet of event use. The property also offers the Pink Door Spa with reception area, providing in-room treatments or spa services including massages, facials, and waxing. The adjacent 2.07-acre parcel provides additional upside related to adding up to 47 additional guest rooms. The property is ideally located in Cathedral City, bordering Palm Springs, just minutes away from Palm Springs International Airport within the Coachella Valley, a premier Southern California destination. The region hosts major annual events such as the BNP Paribas Open, Coachella Music Festival, and Stagecoach Music Festival, collectively drawing hundreds of thousands of visitors each year. The resort is also a short drive to key attractions including the Palm Springs Aerial Tramway, Downtown Palm Springs, Palm Springs Convention Center, McCallum Theatre, Living Desert Zoo, La Quinta Village, local casinos, Indio Fairgrounds, Empire Polo Club, Joshua Tree National Park, and numerous hiking trails including Indian Canyons (Palm Canyon Trail, Tahquitz Canyon, and Murray Canyon). Our pro forma analysis assumes continued modest growth supported by increasing tourism, airport passenger counts, population growth, and overall demand within the Coachella Valley, along with a luxury and upper upscale business plan with strong revenue, group, and event management. Cree Estate (NOT INCLUDED) Not included in the offering is the adjacent Cree Estate (67698 Carey Rd), which features a main residence, two additional buildings, two pools, a tennis court, approximately 750 square feet of indoor event space, 2.5 acres of outdoor event space, a hot tub, and an established partnership for neighboring event use. The property currently operates under a management agreement with the Cree Estate, allowing ownership to book and host weddings and events at the estate. Weddings are marketed at approximately $15,000–$20,000 for weekend use of the property, with ownership earning 30% of the total event fee for bookings secured. This partnership began in April 2025. Several weddings and events have already been secured, with a long-term goal of reaching 30–35 weddings annually, consistent with historical performance.