The 226-room London West Hollywood at Beverly Hills hotel has hit the market with expectations of fetching a price near $400 million.
That would put a deal for the posh establishment at 1020 N. San Vicente Blvd. in West Hollywood at around $1.7M per room, ranking it among the most expensive sales per key in Los Angeles, according to Bisnow, citing a report from Green Street.
Northwood Investors, which bought the hotel in 2013 for $195 million and renovated it for $38 million, has listed the property through Eastdil Secured, an investment bank based in New York. In 2019, the privately held Denver-based firm refinanced it for $165 million.
The London West Hollywood, which opened in 2008 at the site of the former Le Bel Age Hotel, built in 1984, has been a go-to getaway for such celebrities as Chris Pratt, Kim Kardashian and Oprah. It’s also known for in-house celebs Winston and Churchill, two bulldogs who hold court by day. Standard suites start at $500 a night.
In addition to panoramic city views, the hotel features a fitness center, rooftop swimming pool with private cabanas, a screening room and 4,000-square-foot ballroom.
The sale of the glamor hotel south of Sunset Boulevard is expected to draw broad investor interest because it doesn’t have any brand or management contracts, Green Street reports. It could also fetch a near-record price for L.A..
The per-room price record was set last year by Louis Vuitton parent company LVMH, which bought the former 86-key Luxe hotel on Rodeo Drive in Beverly Hills for $200 million, which came out to $2.3 million per room.
Los Angeles hotels are working their way back from pandemic shutdowns. While the London didn’t close, it took the step of renting some of its luxury suites for offices at $5,000 a month.
Average occupancy rates for luxury hotels in January and February were 51.8 percent, more than double from a year earlier, Green Street said, citing data from STR. But that’s still well below the 76 percent occupancy average for 2019.
At the same time, room rates were up almost 70 percent to an average $583.77, the publication reported.
Some hotels never recovered from the pandemic. The Standard in Downtown LA and in West Hollywood, near the London, both closed for good. The Sunset Strip Standard is being sold to hoteliers Ian Schrager and Ed Scheetz, and will reopen under a new brand, The Real Deal reported.
Meanwhile, AEG plans to expand, adding 800 hotel rooms to its J.W. Marriott and The Ritz-Carlton complex in Downtown, as part of a $1 billion renovation of the Los Angeles Convention Center in South Park.
[Bisnow] – Dana Bartholomew
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