Deal at $160K per room comes as hospitality sales shrink in SoCal market

AUG 29, 2023, 5:56 PM

By Trevor Bach / Research by Christian Bautista

In a dire season for L.A. hotel sales, one Irvine-based development firm has picked up a 148-key property near LAX. 

Greens Group, an Irvine-based company led by Ashutosh Kadakia, bought the Wingate by Wyndham Los Angeles International Airport hotel for $23.7 million last month, according to property records, buying the site with two different entities. The price comes out to around $160,000 per room.

The three-star Wingate by Wyndham, located in the city of Inglewood on La Cienega Boulevard, appears to have already closed; it was not immediately clear what plans Greens Group has for the property. 

The deal amounts to a rare L.A. hotel sale in 2023: One recent report from Atlas Hospitality Group found that sales across California had fallen by more than 50 percent in the first half of 2023 compared to the first half of 2022, a steeper drop even than during the Great Recession. 

The decline was particularly bad in Southern California, which saw only 62 hotel deals in the first half of 2023. A year earlier the figure was 151. 

“We have seen nothing like this,” Alan Reay, president of Atlas Hospitality Group, told the San Jose Mercury News. “Nothing this bad.” 

The Wingate by Wyndham, located at 10300 La Cienega Boulevard, went up in 1989, according to property records. The property was then bought in 1999 for $5.3 million by George and Linda Oh; the seller in the recent deal was listed as Sandra Oh, a trustee. 

Last fall, when more hotel deals around the airport were coming through, prices were all over the map. The 143-key Hyatt Place El Segundo sold for $49 million, or about $343,000 per room, while a 281-key La Quinta traded hands for $157,000 per room and a 549-key Four Points by Sheraton traded for less than $100,000 per room.