LaSalle shops Viceroy Santa Monica’s leasehold

Industry insiders said luxury hotel could trade for $88K+ per key

August 08, 2017 05:30 PM
Viceroy Santa Monica (credit: Google Maps)

LaSalle Hotel Properties is shopping its leasehold interest in the Viceroy Santa Monica hotel, The Real Deal has learned.

Sources said the 162-key hotel could go for upwards of $130 million, or $800,000 a key, though the official asking price was not clear.

LaSalle acquired the property in 2011 for $80.1 million. It is subject to a ground lease with the City of Santa Monica, which expires in 2065.

Eastdil Secured is marketing the property on behalf of the company. Representatives of LaSalle and Eastdil did not immediately responded to requests for comment.

The hotel, which originally opened as the Pacific Shares Hotel in 1967, is located at 1819 Ocean Avenue, one block from the beach.

If it sells, the Viceroy would be the first major hotel to trade in Santa Monica since private equity giant Blackstone paid $363 million for the Loews Santa Monica Beach Hotel at 1700 Ocean Avenue in 2015. That deal penciled out to about $1 million a key.

Other recent major L.A. hotel deals include CIM Group’s sale of its Sunset | LaCienega hotel project — which was formerly branded as the James Hotel but has since changes to the Jeremy. Barry Sternlicht’s Starwood Capital purchased the development for $280 million, or about $980,000 a key, in June.

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