Seaview Investors Lands Refinancing for Los Angeles Hotel

A Marriott-affiliated hotel in Pico-Robertson secured an eight-figure refinancing deal a year after it was rebranded.

Brentwood-based mortgage lender Mesa West Capital provided a five-year $55 million loan for the Burton House, Beverly Hills, the Los Angeles Business Journal reported. The debt amounts to $295,700 per key.

The hotel was previously called the Residence Inn Beverly Hills. After being absorbed into Marriott’s Tribute Portfolio Hotels & Resorts last year, the 186-room hotel underwent a $13.7 million renovation and rebrand as the Burton House. The property, at 1177 South Beverly Drive, is across the street from the Beverly Hills Marriott.

The renovation included redesigns of all rooms, lobby upgrades, and a new fitness center and 1,100-square-foot yoga and Pilates studio. The renovation was overseen by an affiliate of Seaview Investors, which has been involved with the property since 2003.

The hotel’s owners secured a $48 million financing package in 2015 from developer infrastructure bank Column, Commercial Observer reported.

The refinancing will allow the bank “time to continue driving operating performance under the new brand and to compete with other luxury hotels in the Beverly Hills market,” Joshua Westerberg, head of Mesa West’s West Coast origination, told the outlet.

The hotel has seen “significant increases in both net operating income and occupancy since renovations were completed,” he said.

Los Angeles last year ranked second in hotel occupancy among major West Coast markets, according to Marcus & Millichap. In the first quarter, L.A. was 15th in occupancy among the top 104 hospitality markets in the country, according to Newmark.

Hoteliers are nervous about the local lodging market in the coming years.

The Olympics-linked wage increase for hospitality workers, which is in limbo as city officials consider a petition to send the ordinance to voters, could threaten the viability of hotel properties’ operations in Greater Los Angeles.

“I’ve never seen so many hotels on the market right now, and none of them are selling,” Hotel Angeleno owner Mark Beccaria told The Real Deal in May. “No one wants to pay anywhere close to what they’re worth.”

Pebblebrook Hotel Trust CEO Jon Bortz was more blunt about the state of lodging in the city. “The L.A. hotel industry is in a depression,” Bortz told The Real Deal. “I’m not exaggerating. It’s horrible.”

Revenue per available room for luxury-tier hotels grew about 4.2 percent year-over-year from early 2024, according to MMCG Invest. The economy segment of the hotel market saw a 1.9 percent growth in revenue per available room.

— Chris Malone Méndez