London+Regional Enters U.S. Hotel Market by Buying DoubleTree by Hilton West Los Angeles

Date: May 2018

Location: Marina del Rey, West Los Angeles, USA

Name: Hotel MdR – a DoubleTree by Hilton

No. of Keys: 283

Seller: Lubert-Adler, Channel West Group and Arris Investments, advised by HFF, who also arranged a five-year, floating rate acquisition loan on behalf of L+R.

Lubert-Adler was co-founded by Ira Lubert and Dean Adler in 1997 and in a joint-venture with Strategic Partners, targets well-located, first-generation atrium Embassy Suites Hotels that can be redeveloped at a favourable cost basis.

Back in 2013, they sold two hotels comprising 647 keys to New York City-based Carey Watermark Investors for a total of $156.6 million.

Another good deal, was the 400-room Marriott Raleigh (NC) City Centre, which was sold for $83 million, also in 2013.

But they are also buyers…New England Development and Eastern Real Estate, along with their partners, Rockpoint Group of Boston and Philadelphia-based Lubert-Adler, reached an agreement with the Taj Group to buy the hotel for an undisclosed price (thought to be around US$125m) in 2016.

Channel West Group is a privately held real estate investment and advisory firm, which operates in the Western United States markets, with hotels like The Anza in Calabascas, CA (sold in 2016) and the Hilton Garden Inn on Waikiki Beach.

Arris Investments is a Los Angeles based real estate investment management firm focused on sponsoring and providing joint venture equity capital to projects across the Western United States, also with an interesting portfolio of hotels, apartments and senior-living.

Buyer: London & Regional, owned by UK’s Livingstone Brothers, Richard & Ian. The transaction marks L+R’s first purchase in the U.S. L&R is a global business with an investment portfolio of over £9bn, with offices in London, Ireland & Panama.

Located at 13480 Maxella Ave., the full-service hotel underwent extensive renovations and a re-positioning as a soft-branded DoubleTree Hotel in 2014.

Guests have access to amenities including an outdoor heated pool and patio, a 24-hour business centre, an energy room with ping-pong table, a Barbianca Local Kitchen restaurant, a state-of-the-art fitness facility, a market and 5,429 square feet of indoor/outdoor event space.

The hotel offers convenient access to other Los Angeles sub-markets such as Playa Vista, Venice and Santa Monica, as well as the Los Angeles International Airport.

Price: US$127m

Price per Key: US$448,763

THPT Comment: L&R entry into hotels has been relatively recent, but they have certainly arrived in style! With iconic luxury hotwls like Chewton Glen, Lygon Arms and Chewton Glen, all in the UK…Nobu, Ibiza, Hotel Excelsior in Venice, London Hilton on Park Lane, Fairmont Monte Carlo, Le Meridien Barcelona, the soon to open Hard Rock London (in The Cumberland) and 50+ other hotels, it’s surprising this is their first hotel in the USA ( a few in The Caribbean)…I am sure not their last!

First Seen: Commercial Property Executive