AEG looks to sell stake in LA Live hotels

Could offer up to 50% in Ritz-Carlton, JW Marriott, seeks proceeds to fund expansion

Los Angeles /
Jan.January 25, 2022 12:03 PM
AEG CEO Dan Beckerman and the Ritz-Carlton and JW Marriott hotels at the complex at 800 West Olympic Boulevard (Getty, Google Maps)
AEG CEO Dan Beckerman and the Ritz-Carlton and JW Marriott hotels at the complex at 800 West Olympic Boulevard (Getty, Google Maps)

AEG is looking to sell a stake in the two hotels at its L.A. Live complex in Downtown Los Angeles.

The Los Angeles-based entertainment firm is willing to sell up to a 50 percent stake in the Ritz-Carlton and JW Marriott hotels at the complex at 800 West Olympic Boulevard, according to the Los Angeles Times.

JLL has been hired to market the sale of the hotel stakes. AEG is specifically looking for hotel operators to take a stake in the project.

AEG is hoping a sale will help fund an expansion of the complex, which is slated to include a 150,000-square-foot tower and conference center with 861 more hotel rooms. The expansion plans, first proposed in 2018, are slated to cost around $800 million and were delayed by the pandemic.

The firm’s vice chairman Ted Fikre said any remaining proceeds from the sale will be invested into some of AEG’s business units, including ticketing and live entertainment.

The L.A. Live complex is not the only expansion AEG is currently working on in DTLA. The firm is also working with the city of L.A. to add 193,000 square feet of exhibit to the Los Angeles Convention Center.

Both expansions come as the hotel industry continues to recover. Investors did return to hotel sales in 2021, betting on the eventual return of travelers after the pandemic stalled travel for more than a year. Hotel sales exceeded $38 billion last year — up almost 400 percent year-over-year, according to JLL.

Leisure hotels have made up the majority of these sales, as investors are still waiting to see when, and whether, business and conference travel returns to 2019 levels.

[LAT] — Isabella Farr





    Related Articles

    arrow_forward_ios
    Link Logistics' Luke Petherbridge with 5200 Sheila Street (Link Logistics, iStock)
    Aerospace outfit leases 115K sf warehouse in Commerce
    Aerospace outfit leases 115K sf warehouse in Commerce
    Bicycle Hotel and Casino (google Maps, iStock)
    Investor scores $210M for Bell Gardens casino deal
    Investor scores $210M for Bell Gardens casino deal
    Dollinger Properties' Dave Dollinger and Plaza at Golden Valley mall (Crexi, Getty Images)
    $54M for Santa Clarita retail center
    $54M for Santa Clarita retail center
    1633 Victory Boulevard, Glendale and Senior Planner at City of Glendale Dennis Joe (Google Maps, LinkedIn)
    New owner wants to enlarge controversial Glendale hotel project
    New owner wants to enlarge controversial Glendale hotel project
    Coretrust Capital Partners' Thomas Ricci, Randall Scott and John Sischo; 444 S. Flower Street, Los Angeles (444 South Flower, iStock, Coretrust Capital Partners)
    Coretrust leases 44K sf of offices to law firms in DTLA
    Coretrust leases 44K sf of offices to law firms in DTLA
    80 South Street (Wikipedia)
    Oceanwide Plaza in DTLA last U.S. project standing for China-based developer
    Oceanwide Plaza in DTLA last U.S. project standing for China-based developer
    Steve Soboroff and U.S. Rep. Karen Bass (Getty)
    Soboroff endorses Bass
    Soboroff endorses Bass
    Los Angeles mayoral candidates: Rick Caruso, Karen Bass and Kevin de Leon (Wikimedia, Rick Caruso, iStock)
    Real estate industry all over LA mayoral money game
    Real estate industry all over LA mayoral money game
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...