A chic Los Angeles hotel located where Beverly Hills meets West Hollywood is on the market.
The SLS Beverly Hills at 465 La Cienega Boulevard, owned by Sunrider International and brainchild of hotel and nightclub mogul Sam Nazarian, could trade for more than $200 million, according to Green Street. But that wouldn’t be much more than the $195 million family-owned Sunrider purchased the luxe hotel from Nazarian’s company SBE (which Nazarian no longer owns) a decade ago. The price looks lighter considering it underwent a $22 million renovation under Sunrider’s ownership.
A $200 million deal at 297 rooms, some of which are suites, would come out to more than $670,000 per key. That’s nowhere near last year’s Los Angeles per-key recordbreaker — Chrome Hearts’ $37.5 million Malibu oceanfront purchase, which came out to almost $2 million a room. But that was an exception to Los Angeles’ ongoing hospitality rut. A deal for the SLS Beverly Hills, at that $200 million price tag, would however be pricer than a West Hollywood hotel 10 minutes away, which last year traded for $44 million or about $330,000 per room.
JLL has the offering, per Green Street, but it appears that it wasn’t tapped first for the gig. Mohr Partners had it earlier, according to an offering memorandum sent out last summer and viewed by The Real Deal.
Sunrider did not respond to a request for comment. Mohr Partners confirmed it no longer has the listing. JLL declined to comment.
Mohr Partners’ marketing materials for the hotel — designed by French architect Philippe Starck, is ultra-modern and has a rooftop pool, lounge and lavish restaurants — noted that it had a 74 percent occupancy rate in December 2022. Revenues were $43 million that year and $42 million the next, which translated to gross operating profits of about $10 million in 2022 and $6 million in 2023, per the financial data included in the materials.
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