Fresh off its $77 million acquisition of the 393-room Hilton Long Beach Hotel and Executive Meeting Center, HEI Hospitality said it will try to acquire an additional three to five West Coast hotels.
“We are working on a number of things in California,” said Stephen Mendell, HEI’s executive vice president of acquisitions and development, noting that Norwalk, Conn.-based HEI is nearing completion on some other deals. “We are definitely focused on trying to find more assets to purchase in California and the West Coast.”
The deal for the Hilton Long Beach, on West Ocean Boulevard, is the sixth HEI has made since June 2004, when it formed HEI Hospitality Fund, a $275 million private equity fund serving as a vehicle for university endowments.
The partnership of Boston-based real estate firm AEW Capital Management LP and Ensemble Investments LLC in Long Beach, sellers of the property, had embarked on a renovation of the 12-year-old hotel.
The 80 rooms that had yet to be refurbished will be redone by the new ownership.
In addition to the hotel, the property includes 21,600 square feet of meeting space and an executive meeting center. HEI said it planned to put $5 million into the rooms and upgrade meeting spaces, pre-function areas, corridors and elevator lobbies and pool area.
An adjacent 5.6 acre parcel of land zoned for residential or office construction will likely be put up for sale.
The hotel, which will be managed by HEI subsidiary Merritt Hospitality and remain under the Hilton flag features a 4,500-square-foot health club, an outdoor pool, a gift shop and clothing boutique and a new Daily Grill.
As the deal closed last week, Hilton Long Beach General Manager Ed Proenza was set to leave for a corporate post at Hilton Hotels Corp., Mendell said. He was to be replaced by Jeff Kulek, former GM at the Marriott Fisherman’s Wharf and the Hilton Port of Los Angeles in San Pedro.
Trips Through LAX Rise
Passenger traffic at Los Angeles International Airport continued its steady climb in November, increasing 9 percent from the year earlier.
The greatest gains at LAX were from domestic travel, which rose 10 percent to 3.5 million passengers for the month, according to Los Angeles World Airports. International passenger traffic increased 6.4 percent in November to nearly 1.3 million passengers.
For the first 11 months of 2004, passenger volume was 55.6 million, 11 percent higher than the same period in 2003. Overall domestic traffic rose 10.2 percent in the period to nearly 40.6 million passengers, while international travel was up 13.3 percent to 15 million passengers.
LAX was expected to end the year with 61 million passengers, the highest volume since 2001, when the airport had 61.6 million passengers.
Moustache Trimmed
The venerable Moustache Caf & #233; on Melrose Avenue is being sold.
Co-owners Fernand Page and Camille Crochet are in escrow on the restaurant, at 8155 Melrose Ave. Moustache will remain open until Jan. 20, when the deal is expected to close, Crochet said.
A fixture on Melrose since 1977, the 6,000-square-foot French bistro, which also has about 1,500 square feet of patio space, has been known for its chocolate souffl & #233; and wine list.
Moustache Caf & #233; had not been on the market but the owners decided to sell after receiving what Crochet said was a “great offer.”
The sale price and buyer were not disclosed, but Crochet confirmed that it will no longer operate as a Moustache Caf & #233;. One commercial real estate brokerage source familiar with the market estimated that the property could be worth between $2 million and $4 million.
Page and Crochet also own a second Moustache Caf & #233; on Glendon Avenue in Westwood, which Crochet said will remain open. “It has been a great business and a great experience, and we will continue in Westwood,” said Crochet.
Santa Monica Retail Activity
Hard Tail, a Santa Monica-based sportswear company, is slated to open its first retail store later this month at a 6,400-square-foot space at 1322 Third Street Promenade Fitness chain Equinox Holdings Inc. opened a 33,000-square-foot club at Second Street and Santa Monica Boulevard in space formerly occupied by advertising firm RPA Kidrobot, a seller of urban vinyl and plush toys, opened a store at 1435 Third Street Promenade, replacing clothing store Undercover.
Staff reporter Rebecca Flass can be reached at (323) 549-5225, ext. 230, or at
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