A leasehold interest in the iconic W Hollywood hotel has sold for $197 million.
A joint venture of funds managed by Trinity Fund Advisors and funds managed by Oaktree Capital Management purchased the 305-room hotel at 6250 Hollywood Blvd. from Host Hotels & Resorts. The hotel, which first opened in 2010, has 265 guest rooms and 40 suites. W Hotels & Resorts is a Marriott International brand.
Sean Hehir, chief executive of Trinity, said the company saw a lot of potential in the Hollywood market. W Hollywood is the Hawaii-based company’s only asset in L.A., despite having an office in Beverly Hills.
“We have a tremendous relationship with Marriott that we really value and are big believers in the L.A. market and the Hollywood submarket with all of the growth going on there with Netflix and everything happening, so we love the location,” Hehir said.
Trinity and Oaktree have worked together before.
“We are excited to acquire the W Hollywood, a landmark property located in the heart of Hollywood, which is undergoing an urban revival driven by the boom in streaming content,” John Brady, managing director and head of the global real estate group at Oaktree, said in a statement. “We value our partnerships with Trinity and Marriott International and have confidence in the team’s ability to execute on our collective vision to revive the W Hollywood to a world-class hotel.”
Trinity and Oaktree are planning to start a multimillion-dollar renovation to the hotel. Changes will include upgrading guest rooms and public areas as well as upgrading the food and beverage offerings.
“We're most excited about helping to really redefine W as a brand and bring that to Hollywood,” Hehir said, adding that other W properties are being renovated as well.
He said the property would act as a “West Coast flagship of the W brand.”
“The city of Los Angeles, as well as the W Hotels brand, have dramatically evolved since W Hollywood opened over 10 years ago,” Chris Gabaldon, senior vice president of luxury brands at Marriott International, said in a statement. “As this evolution continues, we are thrilled to have a visionary partner on board to usher in a new era for this iconic hotel, one which offers global travelers and locals the kind of energy and excitement that only W can deliver in a luxury lifestyle hotel.”
Hehir said it was too soon to comment on exact costs or a timeline for the project but he expects to spend six to nine months working on plans before starting the upgrades.
“We don't rush into it,” he said.
Still, the overall aim is clear: to cater to both leisure and corporate group travel.
“It’s got tremendous meeting space,” Hehir said. “You’re across from the Pantages and you’ve got all the demand generators.”
Hehir said Trinity is interested in acquiring more assets in the L.A. area going forward that also have multiple demand generators.