Qatar-backed hotel firm buys Montage Beverly Hills in record deal

On a per-key basis, deal is one of the biggest hotel transactions in US history

Dec.December 24, 2019 08:00 AM
The Beverly Hills Montage at 225 N. Canon Drive
The Beverly Hills Montage at 225 N. Canon Drive

Qatar-backed hotel firm Maybourne Hotel Group has added the exclusive Montage Beverly Hills hotel to its portfolio, in a deal that values the 201-key property at over $400 million.

Alan Reay, president of Atlas Hospitality Group, told The Real Deal that the deal is a record breaker in California, with rooms at the luxury resort now valued at $2 million.

The Montage sale beat out the previous record of $1.7 million per room back in 2015 when L.A. businessman David Geffen sold the 47-room Malibu Beach Inn for $79.9 million to the Mani Brothers, according to Reay.

Maybourne – which owns London luxury hotels Claridge’s, the Connaught and the Berkeley – announced the Montage Beverly Hills acquisition on Saturday, according to Bloomberg, which first reported the sale. The seller was Ohana Real Estate Investors, which developed the hotel back in 2008.

Financial terms were not disclosed, and Maybourne and Ohana both declined to comment.

The deal is the first in the U.S. for London-based Maybourne, which appears to be backed by one of the richest families on earth. Back in 2015, the billionaire Barclay brothers sold a 64 percent stake in Maybourne to Constellation Hotels, which has been linked to former Qatari prime minister Sheikh Hamad bin Jassim Al Thani (better known as HBJ), according to Bloomberg.

L.A.-based Ohana, owned by eBay founder Pierre Omidyar, owns several luxury resorts across the country, including the Montage Laguna Beach, a 68-room luxury boutique in St. Helena in Napa Valley and the Montage Deer Valley ski resort in Utah. The firm also has a stake in the San Vicente Bungalows in West Hollywood, a private membership club and luxury boutique hotel that opened last year.

The Montage is located in Beverly Hills’ Golden Triangle neighborhood. It features a 20,000-square-foot spa and rooftop pool that overlooks Rodeo Drive. Rooms on weekends can cost up to $10,000 a night.

Related Articles

North Office at 301 Canon Drive and Jamie Duran

Coldwell Banker closes an office in Beverly Hills, and throws a big party

An illustration of Airbnb's Chief Executive Brian Chesky

Los Angeles No. 1 in country for Airbnb, other short stay rentals

Developer seeks permission to build hotel at Lankershim Boulevard and Gilmore Street (Credit: Google Maps and iStock)

LA’s hotel boom continues with proposed 89-key development in North Hollywood

Lauren Sanchez and Jeff Bezos with the property at 1441 Angelo Drive (Credit: Getty Images and Redfin)

A $90 million patch of dirt: A look at Jeff Bezos’ other record LA deal this week

Amazon CEO Jeff Bezos with the home (Credit: Pintrest and Getty Images)

Jeff Bezos buys David Geffen’s Beverly Hills estate for record $165M

Los Angeles County dominates the US real estate market

LA tops US I-sales market in 2019

John Mirisch

Meet Sacramento’s worst nightmare: Beverly Hills mayor John Mirisch

Institutional investment in Los Angeles is lagging

LA is one of the trickiest cities for institutional investors to understand. Here’s why