search

The Real Deal Logo

Trending

Lawmakers reach sweeping housing deal with “good cause eviction,” new 421aLawmakers reach sweeping housing deal with “good cause eviction,” new 421aSL Green, Vornado kick in $100M to extend 280 Park loanSL Green, Vornado kick in $100M to extend 280 Park loanMarty Burger’s new venture sputters on takeoffMarty Burger’s new venture sputters on takeoff“Investing before the ‘all clear’ sign”: Jon Gray on Blackstone’s $10B apartment deal“Investing before the ‘all clear’ sign”: Jon Gray on Blackstone’s $10B apartment deal
Commercial
Los Angeles

That was quick: Host Hotels buys W Hollywood Hotel for $220M

W Hotel Hollywood (via We First)
W Hotel Hollywood (via We First)

That didn’t take long.

A joint venture between HEI Hotels & Resorts and Gatehouse Capital was just launching efforts to market the W Hollywood Hotel when Host Hotels & Resorts made an offer that could not be refused.

The Bethesda, Maryland-based REIT agreed to pay roughly $220 million, or $721,300 per room, for the leasehold interest in the 305-room hotel, REAlert reported. Eastdil Secured brokered the sale.

Sign Up for the undefined Newsletter

HEI and Gatehouse developed the hotel and an adjoining condominium tower in 2010. They tried to find a buyer for the hotel in 2015, without success. Since then, Los Angeles-area hotels have seen their revenue per room increase.

The property is managed by Starwood Hotels & Resorts, which owns the luxe W brand. In addition to its rooms, it makes money from seven billboards and and 10,000 square feet of street-level retail on the property, in the smack center of Hollywood.

The hotel has upscale restaurants and bars; a rooftop pool; a spa; and 33,000 square feet of event space. [REAlert] — Hannah Miet

Tags
Commercial Real EstateHotels