Residents living along the cliffs above Capistrano Beach say they are looking forward to the unveiling of a newly renovated Capistrano Seaside Inn, which after sitting in disrepair, bogged down by legal disputes for years, might open as early as the spring.
The inn, once listed among the nation’s 10 worst motels on Yelp, has been undergoing restoration after new owners purchased the property in a 2021 foreclosure sale.
Owners Jeff Finn and Danny Hyde, who operate as Artist Guild Hotels, are restoring the property with an eye to its historical roots – it’s considered a historical resource under state law. Finn said its design is inspired by old Doheny homes, and the 30-room motel will look like an “eclectic Spanish Hacienda” when completed.
At 80 years old, the property, which sits across the sand from Doheny Beach on 1.5 acres at Pacific Coast Highway and Palisades Drive, was once considered a sterling early example of the Depression-era California motor court-style hotel and was a popular retreat for Hollywood celebrities.
But in its later years, it was nicknamed Capo’s Bates Motel and Flea Side Inn by its Capistrano Beach neighbors.
In 2017, after repeated attempts to have the inn cleaned up, the city red-tagged the property, citing dozens of code and safety violations, including illegal wiring and a lack of working fire alarms.
Six months later, fearing the historic inn would be torn down for a larger development, city officials convinced a judge to put the property in receivership and a plan was made to renovate the property – while maintaining its historical character – so that it could again offer affordable rooms for people visiting the beach and Dana Point area, an important issue to city officials.
After several delays in court over a period of four years, Artist Guild Hotels bought the property after a foreclosure, said Dana Point City Attorney Patrick Munoz. Finn and Hyde — who operate their boutique-style business out of San Clemente — agreed to fix the myriad of issues and preserve the property’s historical context.
The structural work on the property is largely done, but some finishing touches have been held up by supply chain issues, city officials said.
Residents who live above the property and walk by it regularly, said they have been watching its progress and are pleased that the void on the corner will now, hopefully, become a community attraction and a fun place to stop in for a cup of coffee before heading across PCH to the strand.
There was a “grandiose plan of creating a huge hotel there,” said Toni Nelson. “I’m glad that didn’t happen. We need more charm and less huge buildings covering up the iconic bluff and walkway down Palisades.”
Nelson pointed out a small area near the intersection that is right in front of the inn. She’d like to see the new owners buy it and turn it into a “cute park.”
“It would sure add a lot of charm,” she added, suggesting if Finn and Hyde don’t want it, the city could step up and turn it into a pocket park. “It would be a great asset to that corner.”
Councilmember Mike Villar, who represents the Capistrano Beach community, said he is also excited to see the project come together.
“That area has been such an eyesore for so long,” he said. “To know that it’s been repaired and is close to the original look will be so uplifting to the community.”
Villar said the property, in all its historical splendor, will be an attraction for many people.
“It provides accommodations unlike anything else in Dana Point,” he said. “The whole area will have a fresh look and, hopefully, it will help surrounding businesses and restaurants as well.”
