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California college system drops $193M on sprawling cliffside hotel — as in-state students fork over $50K a year on tuition
The University of California system’s investment arm has bought the Ritz-Carlton resort in Half Moon Bay for $193 million. The purchase comes as annual costs at several UC campuses exceed $50,000 for California residents, prompting questions about affordability and the use of the system’s investment funds.
The 261-room resort will be held as an investment, with reports suggesting it could retain the Ritz-Carlton name and management. UC Investments manages a portfolio worth more than $300 billion that helps fund pensions for about 40,000 retirees. The hotel is Half Moon Bay’s largest employer and taxpayer; its past controversies include a $1.6 million fine in 2019 over blocked beach access, while families may face costs of about $200,000 for four years at a UC campus.
In short
- UC Investments bought the Half Moon Bay Ritz-Carlton for $193 million.
- Annual costs at some UC campuses top $50,000 for residents.
- The resort is an investment intended to support UC retirement funds.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
UC Investments manages a large portfolio to support pensions, and a hotel acquisition could be judged on whether it earns competitive returns for beneficiaries rather than on whether it directly lowers tuition. The resort may also provide local jobs and tax revenue, while its continued operation under an established manager could preserve those benefits.
The case against
A $193 million purchase of a luxury resort can reasonably prompt questions about whether the system’s investment choices reflect its public mission, especially when California students face high costs and some families may pay about $200,000 over four years. Even if the investment supports pension funds, critics may argue that the scale and symbolism of the deal risk weakening confidence that UC is putting educational affordability and public benefit first.