The Conversion Plan
After an extensive retrofit and modernization as an office tower, Tower 180 is now preparing for another major transformation—this time into a dual-brand Hyatt hotel. Developer J Street plans to convert the 25-story building into both a Hyatt Place and a Hyatt House, creating roughly 560 total rooms between the two brands. The estimated project cost is around $250 million, with construction expected to begin in early 2026 and completion anticipated within two years. At roughly 385,000 square feet, Tower 180 will become one of Southern California’s largest office-to-hotel conversions and a new hospitality anchor for downtown San Diego.
Interestingly, this will be the second major redevelopment of the property in just a few years. According to Carrier Johnson + Culture’s website, the architecture firm behind the earlier remodel, the 2020 conversion of the tower into a Class A office building carried a construction cost of $68 million—a figure that actually exceeds the $61 million paid by the current owner when they acquired the property in December 2023. That price difference highlights just how challenging the office market has become, even for recently renovated, high-quality buildings.
Why Tower 180 Works for a Hotel Conversion
Not every office building can successfully transform into a hotel, but Tower 180 has the right combination of features. Its efficient floorplates, large window lines, and central building core make it easier to create well-sized guest rooms with natural light and good circulation. The building is also fully vacant, allowing redevelopment without tenant disruptions or phased construction. Its location along Broadway places it near the Gaslamp Quarter, the Convention Center, and the waterfront—all major demand drivers for both business and leisure travelers. These physical and locational advantages make Tower 180 an ideal candidate for a conversion that will bring steady activity back to this stretch of downtown.
Key Details:
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Building size: approx. 385,000 sq ft
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Number of rooms: ~560 total (371 Hyatt Place + 189 Hyatt House)
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Project cost: around $250 million
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Location: 180 Broadway, San Diego, CA 92101 (1st and Broadway)
- Developer – J Street Hospitality
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The Office Market Challenge
Downtown San Diego, like much of the country, continues to struggle with elevated office vacancies and lower leasing activity. As hybrid work remains common, property owners are searching for new ways to use aging or underperforming office buildings. In many cases, converting to residential or hospitality use makes more financial sense than waiting for tenants who may never return at the same scale. San Diego’s zoning flexibility and adaptive reuse framework also help make projects like Tower 180 feasible, turning empty spaces into properties that once again contribute to the city’s economic vitality.
A Strong Case for Hotels in Downtown
While it might seem that San Diego already has an abundance of hotels, occupancy data tells a different story. The region consistently posts some of the highest occupancy rates among major U.S. markets, often averaging in the mid-70 percent range year-round and climbing into the 80s during peak travel months. Tourism, conventions, and business travel keep demand steady across seasons, while the city’s weather and coastal setting continue to draw visitors. For this reason, converting underused office space into hotels isn’t oversupply—it’s responding to sustained demand.
Tower 180 represents the type of creative redevelopment that can help reshape downtown San Diego’s skyline and economy. By adapting an empty office tower into two thriving hotel brands, J Street and Hyatt are showing how thoughtful reuse can revitalize a property and support the broader downtown community. With strong tourism fundamentals and a prime location, Tower 180’s next chapter as a hospitality destination may prove to be its most successful yet.
A Downtown Professional You Can Trust!
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Ryan Ponce - REALTOR®
DRE# 01902950
(619) 228-6790
Ryan@livingthesandiegolife.com
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