In what Bruce Baltin of hospitality consulting firm PFK Consulting USA said was one of the biggest hotel deals in Los Angeles County this year, Carey Watermark Investors Inc., a New York real estate investment trust, bought the Westin Pasadena for $143 million, or about $408,000 a room, last week.
CWI bought the 350-room hotel, at 191 N. Los Robles Ave., from Norwalk, Conn., hotel investment group HEI Hotels & Resorts, which will continue to manage the property.
CWI was interested in the 266,000-square-foot property because it is well-located, according to Guy Lawrence, a spokesman for CWI.
“It’s an attractive cash-flowing asset in a market that has strong demand with leisure and commercial travelers,” Lawrence said.
The firm plans to add value through extensive renovations to all of the guest rooms, replacing everything from wallpaper to furniture, he said. In addition to the purchase price, CWI is investing $15.5 million toward those renovations and other acquisition-related costs.
Eastdil Secured, a New York real estate firm that represented the seller, did not respond to requests for comment.
“The hotel market is healthy right now, with far more potential buyers than owners willing to sell – which makes the market ideal for owners who want to remove their capital and put it elsewhere,” Baltin said. “Since HEI is retaining management of the hotel, the sale was a way for them to get their money out while still maintaining an income stream from fees.”
The per-room price for the hotel is not considered high. Last month, L.A. billionaire David Geffen sold the 47-room Malibu Beach Inn for about $1.7 million a room, almost $80 million in total.