A pair of hotels in El Segundo near Los Angeles International Airport have been sold to New York’s Blackstone Group for nearly $97 million, according to public records.
The 350-room Fairfield Inn and Suites, operated by Marriott International Inc., and the 246-room Aloft, run by Starwood Hotels & Resorts Worldwide Inc., next door on Sepulveda Boulevard were sold in separate deals on June 16.
The Fairfield Inn went for $54.4 million, or $155,367 a room, while Aloft fetched $42.6 million, or $173,057 a room, according to public records.
Rubicon Co. had purchased the full site at 525 N. Sepulveda for $26.9 million in 2013 when it was the 640-room Hacienda Hotel, public records show. Real estate industry tracker CoStar Group Inc. reported at that time that the hotel buildings sat on 4.5 acres, including three acres of parking lots, and that Hacienda was the 10th-largest Los Angeles County hotel.
It was later converted to a Fairfield Inn and an Aloft in separate buildings.
Miami-based Klewin Construction Inc. took on the transformation project at a cost of $30 million, according to Construction Today Magazine. The upgrades ranged from seismic, mechanical and plumbing improvements to cosmetic facelifts for rooms, corridors and lobbies.
Neither Rubicon nor Blackstone responded to requests for comment.
The El Segundo submarket has 10 hotels, according to CoStar, and six have sold in the past three years, including the Fairfield Inn and Aloft.
Blackstone entered the market in 2014, buying Hyatt Corp.’s Hyatt Place on Nash Street.
Another major institutional investor, Colony NorthStar Inc., purchased Hyatt House that same year on Douglas Street for $22.3 million, or $155,650 a room.
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