Hotel Palomar Los Angeles, an upscale boutique hotel in Westwood, traded last month for $78.7 million, or nearly $300,000 per guest room.
Pebblebrook Hotel Trust of Bethesda, Md., acquired a 93-year leasehold interest in the property, a 264-room full-service hotel, just blocks from Westwood Village at 10740 Wilshire Blvd.
The deal, which closed Nov. 20, was struck with Behringer Harvard, a real estate investment trust out of Addison, Texas. The last time the hotel traded hands, in early 2008, it went for $33 million.
The acquisition brings Pebblebrook’s portfolio to 33 properties and marks its fifth investment in Los Angeles. It also owns the W Los Angeles – Westwood, La Meridien Delfina Santa Monica, the Redbury Hollywood Hotel and the Mondrian Los Angeles in West Hollywood.
Jon Bortz, chairman, president and chief executive of Pebblebrook, said the company was thrilled to get its hands on a luxury property in a prime location.
“The hotel is ideally located at the corner of Wilshire Boulevard and Selby Avenue, with proximity to all of the major motion picture studios, prominent dining, retail and museums and the Wilshire Corridor, which contains some of the highest-quality residential and office space in Los Angeles,” he said in a statement. “The healthy economic environment in the West Los Angeles market, which has benefited from increased international inbound travel, provides excellent long-term operating fundamentals for the hotel.”
For the 12-month period ending September 2014, the Palomar hotel operated at 87 percent occupancy with average daily room rates of $207 and revenue per available room of $180. In 2015, the company expects the hotel to have earnings before interest, taxes, depreciation and amortization of up to $5.7 million.
The hotel will continue to be managed by San Francisco hospitality company Kimpton Hotels & Restaurants.
Billionaire developer Rick Caruso announced last week that his Caruso Affiliated had completed the purchase of a portfolio of retail properties in Pacific Palisades along Swarthmore Avenue.
The 2.8-acre portfolio, estimated by some to be worth between $40 million and $50 million, includes nearly all of the storefronts lining Swarthmore Avenue between Sunset Boulevard and Monument Street, some nearby properties on Sunset and a 1-acre parking lot south of Swarthmore that has been zoned for multifamily use.
Caruso also announced that he was under contract to buy a Mobil gas station on the corner of Sunset and Swarthmore. That deal is not expect to close until mid-2016.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Caruso Closes on Sale of Palisades Site
- Replacement Meal Maker Whips Up 7-Eleven Deal
- $600M Redevelopment Proposed for Former MWD Site Near DTLA
- Palisades Goes in High Style
- Pebblebrook Hotel Trust Acquires Redbury
- Shored-Up Office Property Sells for $53 Million
- Hotel Gives 14,580 Percent Gain
- No Vacancy?