Relevant Hands Back Keys

The embattled Grant King-helmed Relevant Group handed back the keys to a trendy Hollywood hotel to a lender, records reveal.

LCP Group seized control of Dream Hollywood Hotel at 6417 Selma Avenue via a deed in lieu of foreclosure signed by King. The unpaid debt and costs amounted to about $38 million, or more than $200,000 a room.

King did not respond to requests for comment; LCP declined to comment.

The Real Deal previously reported a UCC foreclosure auction was scheduled late last year, and the lender was seeking to foreclose on the equity interests in the slim, 10-story, 178-key hotel, a block south of Hollywood Boulevard and a block north of Sunset Boulevard. King said at the time that Relevant was working on a loan recapitalization and extension with the lender.

LCP issued a $33 million senior mortgage refinancing loan to Relevant three years ago. Relevant previously raised money via EB-5 investors, too.

King still owns the land underneath Tao, the restaurant nestled next to the boutique hotel that has a rooftop pool and bar. LCP is leasing the space, according to a person familiar with the situation.

Dream isn’t the only hotel lost recently by King after Relevant Group raised hundreds of millions of dollars and developed three establishments — Dream, Tommie and Thompson — all in Hollywood between Selma and Wilcox avenues. King lost the latter two when the mezzanine lenders on the hotels acquired both through foreclosure in 2023, only a couple years after completion. Recent records revealed the lenders acquired the properties through credit bids via a $72 million loan for the two hotels. (The two sport different names and brands now).

The turn of events at Dream Hollywood is emblematic of recent troubles for the Los Angeles’ hotel market. Numerous hoteliers are defaulting on debt and facing foreclosure, while the Measure ULA property-transfer tax has slowed commercial trades. Homelessness contributes to a dip in tourism that hurts revenues — and a $30 minimum wage for hotel workers is another spooking investors.