The buyer is a new entity created by Westbrook Real Estate Fund IV. Last week, Wyndham sold approximately $345 million to Westbrook Hotel Partners IV and said that it would close on two additional sales totaling $103 million by the end of the year.
The 17-story Warner Center Marriott has 463 rooms and 20 meeting rooms totaling 16,000 sf of space. Alan X. Reay, president of Costa Mesa, Calif.-based Atlas Hospitality Group, tells GlobeSt.com that the hotel last sold for $50.85 million in December 1995.
Reay estimates the replacement cost of the property to be at least $100 million, and he tells GlobeSt.com that the Woodland Hills hotel market "is considered to be very healthy and has held up well over the last 12 months." The Marriott has been running at average daily rates of about $129 and at 75% occupancy, which Reay describes as "strong compared to the overall Los Angeles market, which is running at an average of $93 average daily rate and 63% occupancy."
The Marriott will be managed by Sunstone Hotel Investors LLC, which operates 61 upscale and mid-scale hotels with 14,838 rooms throughout the United States.
Wyndham CEO Fred J. Kleisner said the company is divesting non-strategic assets to reduce debt and focus on its proprietary brands. Bear, Stearns & Co. Inc. and J.P. Morgan Securities Inc. served as financial advisors to Wyndham in the sale.
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