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LAX-area Motel 6 leaves light on for $46M sale to Inland Empire investor
Income Property Investments gets $29M loan from East West Bank for deal
Rancho Cucamonga-based firm Income Property Investments bought a Motel 6 location near Los Angeles International Airport.
The 266–room property at 5101 West Century Boulevard in Inglewood sold for $46 million, according to documents filed with Los Angeles County––or about $173,000 per room. The seller is G6 Hospitality, which operates 1,400 economy hotels under the Motel 6 and Studio 6 brands.
The 112,875-square-foot property, which sits on a 2.6-acre site, is located off the 405 Freeway, about two miles from LAX Airport.
Income Property Investments is funding the acquisition with a $29 million mortgage, property records show. The lender for the new loan is East West Bank.
The sale is not Income Property Investment’s first Motel 6 acquisition. The company already operates nine other properties affiliated with the chain in California, according to its website, including motels in Palm Springs, Oakland, Sunnyvale and Buena Park.
The sale comes as Blackstone, G6 Hospitality’s parent, explores a sale of the budget hotel brand’s holding company. Last December, Blackstone started working with advisers to solicit interest from potential suitors, according to a previous report from Bloomberg. The investment firm is said to be eyeing a sale that would value the company at more than $1 billion. Blackstone, along with partner Starwood Capital, earlier bought mid-priced hotel brand Extended Stay and lodging REIT ESH Hospitality.
Blackstone recently refinanced a 106-property portfolio of Motel 6 and Studio 6 hotels. Under the deal, G6 secured a $685 million CMBS loan from Goldman Sachs and J.P. Morgan. The portfolio, which includes 98 Motel 6 and eight Studio 6 hotels, covers assets in 12 states, most of which are in California.
Income Property Investments did not respond to a request for comment.