LA county hotel sales bounce back in 2021

Investor appetite centers on luxury properties, airport-area establishments

Los Angeles /
Dec.December 15, 2021 11:00 AM
LA county hotel sales bounce back in 2021
Sofitel Beverly Hills, J.W. Marriott Santa Monica, Hyatt Regency LAX (Sofitel Los Angeles, Marriot, Hyatt)

Travel still hasn’t returned to pre-pandemic levels, but investors were much more willing to pick up hotels in 2021 compared to last year.

The top deal this year was the Sofitel in Beverly Hills, which sold for $97.5 million — just under last year’s top price of $100 million.

This year’s crop was stronger on prices overall, though. All of the top 10 deals sold for more than $29 million for 2021–only two of last year’s list would have made the cut.

Here are the top 10 sales in Los Angeles County this year, according to a TRD analysis of data provided by CBRE and Newmark.

1. Sofitel Beverly Hills | Abady Holdings | $97.5 million

The biggest sale of the year was one of the largest hotels in Beverly Hills: the 295-key Sofitel at 8555 Beverly Boulevard.

Local investor Alon Abady bought the land under the hotel for $55.5 million in October, also getting the leasehold interest in the property for $42 million, or around $330,500 per key, records show.

Abady bought the leasehold from Chicago-based GEM Realty, Goldman Sachs and AccorInvest, according to CBRE. The land was acquired from two separate family investors.

Accor will continue to manage the property, sources told The Real Deal at the time of the sale.

2. J.W. Marriott Santa Monica | Stockdale Capital Partners | $75 million

There was a tie for the second-most expensive sale.

Westwood-based Stockdale Capital Partners bought the J.W. Marriott Le Merigot in Santa Monica for $75 million in May, around $428,600 per room.

Kentucky-based Columbia Sussex sold the 175-key hotel at 1740 Ocean Avenue, after first putting it up for sale in February. The firm was slammed by the pandemic, with three of its hotels in foreclosure earlier this year and around $1.3 billion in CMBS debt on its books.

3. Hyatt Regency LAX | Southwest Carpenters Trust Fund | $75 million

Tied for the second most expensive hotel sale across the county this year was the Southwest Carpenters Trust Fund’s $75 million purchase of the 508-room Hyatt Regency at LAX.

New York-based, union-owned bank Amalgamated Bank sold the hotel to the carpenters union, after spending $75 million on renovations in 2016. Prism Hospitality will stay on to manage the property.

The deal came out to around $147,600 per room.

4. Westin LAX | Lone Star Funds | $71.25 million

In addition to being one of the world’s busiest airports, LAX was also a popular choice for hotel investors.

In November, Lone Star Funds bought the 747-key Westin LAX for $71.25 million, as part of a larger $551 million acquisition of a five-hotel portfolio. The hotel is located at 5400 West Century Boulevard.

Host Hotels sold the portfolio, which included The Whitley, a 507-room hotel in Atlanta’s Buckhead neighborhood, the 265-key Westin in Buckhead, the 362-key Marriott San Ramon in Santa Clara and the 324-room Westfields Marriott Washington Dulles in Virginia.

Though also at LAX, the deal was substantially less than the Hyatt Regency sale at $95,400 per key.
I

5. Mr. C Beverly Hills | Braemar Hotels & Resorts | $65 million

Beverly Hills saw two of this year’s top sales, part of a trend of luxury hotels for leisure faring better while mid-tier business hotels continued to take hits from the pandemic.

Dallas-based Braemar Hotels & Resorts bought the 138-key Mr. C Beverly Hills hotel for $65 million in June. The firm, run by Monty Bennett, also got five condos next door for another $15 million.

The Mr. C hotel at 1224 Beverwil Drive opened in 1965 and was renovated in 2011. The Cipriani family, who operated the hotel, and developer Bob Ghassemieh of Atlantic Pearl, sold the property.

The hotel’s per room price was more than the Sofitel deal, at around $473,900 per key.

6. hClub Los Angeles | Stockdale Capital Partners | $57 million

Stockdale went all in on the Los Angeles hotel market this year, buying two properties. This one was the most expensive sale in terms of price per key.

In April, the firm bought the 35-room hClub Los Angeles at 1717 Vine Street in Hollywood for $57 million — around $1.6 million per room. Vulcan Real Estate sold the property.

The hotel was renovated in 2019, with Vulcan adding a pool, rooftop restaurant and lounge.

7. Residence Inn Pasadena | Dauntless Capital Partners | $52 million

In April, Idaho-based private investment firm Dauntless Capital Partners bought the 144-key Residence Inn in Pasadena. Located at 21 West Walnut Street, the hotel was sold by RD Olson.

The sale came out to around $357,600 per key — one of the more expensive deals in terms of price per key this year.

8. Sheraton Pasadena | Monarch Alternative Capital | $46 million

Also in Pasadena, Orlando-based Monarch Alternative Capital bought the Sheraton Pasadena at 303 Cordova Street for $46 million. Eagle Hospitality Trust sold the 311-key property and Monarch brought on Hersha Hospitality Management to operate the hotel.

The deal was significantly less than the Residence Inn sale, at around $146,300 per room.

9. The Orlando Hotel | Timberlane Partners | $38 million

Near popular retail spot Beverly Grove, the 98-room boutique hotel The Orlando Hotel sold for $38 million, around $392,200 per unit. Timberlane Partners bought the property at 8384 West 3rd Street from PK Nevada.

10. Extended Stay America in Woodland Hills | Blackstone, Starwood Capital | $29 million

Rounding out the list was Blackstone and Starwood Capital’s purchase of an Extended Stay America at 20205 Ventura Boulevard in Woodland Hills, as part of the investment firms’ $6 billion acquisition of Extended Stay America. The investment firms bought the 146-key hotel for $29 million, around $197,800 per room.





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