$93M deal among largest during pandemic
Sunstone Hotel Investors sold a 502-room property outside Los Angeles International Airport for $92.5 million, making it one of the largest pandemic-era deals of its kind.
The buyer of the Renaissance Los Angeles Airport Hotel at 9620 Airport Boulevard was not disclosed, according to the Los Angeles Business Journal. The property was renovated in 2018.
In late October, the tony Viceroy L’Ermitage in Beverly Hills sold for $100 million.
L.A. hotels and properties nationwide have been decimated by the coronavirus. Across, the U.S., hotel property owners this year have sold at big discounts.
In 2019, the Renaissance hotel generated revenue of $32 million, with an average room rate of $147.
Atlas Hospitality Group president Alan Reay called the deal “a good price for the seller,” given how hard the LAX hotel market has been hit, with business and leisure travel all but nonexistent.
Marriot International CEO Arne Sorenson said last month that he expects it will take “a vaccine or two” to revive the hospitality sector. He expressed concern that the economy is becoming less connected as the pandemic lingers.
The LAX market was seeing steady hotel development before the pandemic. Developers in the area were even converting a handful of office properties into hotels.
[LABJ] — Dennis Lynch