“Affordable” UC spent 190 million to buy a hotel overlooking the ocean for a purpose that has nothing to do with academics.

While University of California (UC) students face college expenses of more than $50,000 per year, the UC system is spending huge sums to acquire luxury hotels, the New York Post reported. According to Coastside News, UC Investments has spent $193 million to acquire the Ritz-Carlton, a luxury brand owned by Marriott overlooking the Pacific Ocean in Half Moon Bay.

The 261-room waterfront hotel will be part of a larger investment portfolio of more than $300 billion to help pay for the retirement benefits and benefits of approximately 40,000 university retirees.pension . The UC system declined to comment.

This surprising acquisition has once again raised questions about the cost of a college education. UC has long been considered the only way to afford a college education. However, this deal may also come with some financial burden. Reports indicate that the former hotel owner may owe up to $2.1 million in hotel lodging taxes.

A source told The Coast News that UC’s acquisition of the Ritz-Carlton hotel is solely for investment purposes, unlike university-owned hotels that are used for conferences and academic research activities. Another source, who owns several hotels, said Canada may retain the Retiro Carlton Hotel name and introduce a brand management team to operate it.

The report also notes that the resort is the largest employer and taxpayer in Half Moon Bay. Jagdeep Singh Bachher, UC’s chief investment officer, has in the past expressed interest in investing in real estate, particularly the San Francisco Bay Area and affordable housing.

Opened in 2001, this expansive oceanfront hotel features a full-service spa, multiple restaurants, and spectacular views of the Pacific Ocean. When the hotel first opened, it had 93 fireplaces, six tennis courts, and a 122-seat restaurant. Room rates are up to 3,000 yuan per night, the report said. However, luxury hotels have also caused public concern due to coastal erosion and rising sea levels.

It is reported that local residents have been opposing the hotel development plan for decades. In 2019, the hotel was fined 1.6 million yuan for obstructing public access to nearby beaches.

The acquisition comes at a time when UC is facing intense pressure on operating costs, with Californians now facing six-figure bills at four-year colleges, even if they choose a public university. For undergraduates, four years of tuition and fees will cost 200,000 yuan for in-state students, and the cost for out-of-state students, including housing and other expenses, can exceed 300,000 yuan.