Unified communications system buys $193 million from Ritz-Carlton while California university costs more than $50,000

California students are being saddled with college bills topping $50,000 a year, while the University of California system is spending nearly $200 million on a luxury hotel overlooking the Pacific Ocean.

UC Investments, the investment arm of the university system, purchased the Ritz-Carlton in Half Moon Bay for a whopping $193 million, according to a Coastside News report.

The 261-room resort will join UC Investments’ portfolio, valued at more than $300 billion, and helps fund retirement benefits and pensions for approximately 40,000 college retirees.

UC representatives declined to comment to the outlet.

The eye-popping purchase comes as the cost of attending several college campuses has surpassed $50,000 a year for California residents, raising new questions about affordability in a public university system long seen as a path to an affordable college education.

The hotel deal could also come with financial baggage. Its former owner reportedly owed up to $2.1 million in delinquent hotel occupancy taxes.

Unlike college hotels typically used for conferences and academic retreats, the Half Moon Bay Ritz-Carlton is strictly intended as an investment, a source told Coastside News.

The university could keep the Ritz-Carlton name and tap the luxury brand’s management team to operate the property, according to another source that owns several hotels.

The resort is also a major player in the local economy, being Half Moon Bay’s largest employer and taxpayer, according to the report.

UC Chief Investment Officer Jagdeep Singh Bachher has previously expressed interest in investing in local real estate, particularly in the Bay Area and affordable workforce housing, Coastside News reported.

The expansive oceanfront property opened in 2001 and features 261 guest rooms, a full-service spa, multiple restaurants and stunning views of the Pacific.

When it opened, the resort had 93 fireplaces, six tennis courts and a 122-seat restaurant, with rooms costing up to $3,000 a night.

But the lavish property has also been the subject of controversy over its coastal location, including concerns about erosion and sea level rise.

Residents have fought development at the resort for decades, and in 2019 they were fined $1.6 million for blocking public access to a nearby beach.

The purchase comes as the unified communications system faces increasing pressure on its operating costs, including rising spending on pensions and retirement benefits.

Housing and food costs have also helped drive up the price of college, leaving California families facing six-figure bills for a four-year degree at a public university.

Over four years, many families residing in the state will spend around $200,000, while out-of-state students can pay more than $300,000 when factoring in other costs like housing.

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