Source link : https://sandiego365.info/2025/09/28/hotel-project-at-san-diego-bay-navy-site-canceled-due-to-funding-shortfall/
Plans for a new hotel on a prime Navy site along San Diego Bay have been officially scrapped, citing a lack of available capital as the primary obstacle. The project, which had aimed to transform a portion of the waterfront into a bustling hospitality destination, will no longer move forward amid funding challenges. This decision marks a significant shift in the ongoing development of San Diego’s waterfront, raising questions about the future use of the valuable Navy-owned land and the broader impact on the city’s tourism and economic growth strategies.
Funding Shortfall Forces Cancellation of Proposed Hotel at Navy Site on San Diego Bay
The ambitious redevelopment of the Navy site on San Diego Bay has hit a major obstacle as financiers withdrew support, citing an insurmountable funding gap. Developers announced that the proposed hotel, a central element of the multi-use plan aimed at boosting tourism and local economy, would no longer move forward. Key backers revealed an environment of “uncertain capital markets” and escalating construction costs as primary reasons behind the decision.
Project stakeholders highlighted several critical factors that contributed to the cancellation:
- Surging labor and material expenses amid supply chain disruptions
- Investor hesitancy due to volatile economic conditions
- Challenges in securing long-term financing commitments
| Factor | Impact |
|---|---|
| Construction Costs | +25% increase over initial estimates |
| Financing Withdrawal | $50… |
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Author : Miles Cooper
Publish date : 2025-09-28 16:56:00
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