Berkadia Anchors West Coast Hotel Business in L.A.

Los Angeles’ hot hotel market has lured Berkadia’s Hotels & Hospitality group. The group has opened its first formal West Coast office, choosing the L.A. market because it is a top market for investors. Berkadia has seen increasing interest in Southern California in general for both hotel investment and hotel development, and says that California was one of the top markets for hotel transactions in 2017. “We chose L.A. because of the size and strength of its market. It’s one of the top five hospitality markets and one that many investors are eager to break into,” Matthew

Bailly, senior director at Berkadia and the head of the new West Coast office, tells GlobeSt.com. “With the support of Berkadia’s existing presence in the SoCal region—in addition to the LA office we have offices in El Segundo, Irvine, Murrieta, San Clemente, San Diego, Pasadena and Woodland Hills—we’ve been able to hit the ground running. Sustained regional growth, strong development and favorable cap rates make these markets incredibly attractive to investors, but also very competitive. Our increased presence in the region will enable us to help clients identify and capitalize on truly valuable opportunities.”

Los Angeles will also serve as a hub to grow the hotel business in other emerging markets, including the Mountain West market, particularly Denver, Boise and Salt Lake City. “This office is also a strong entry point for access to the entire Western portion of the US,” says Bailly. “We’ve been active across the West, including a recent hotel sale in Montana, but our goal is to keep expanding and we’re confident we’ll have more opportunities to do so now that we’re fully bicoastal.”