Marriott Sale Tops $80M

Concurrently, Tishman Hotel Corp. (THC) was named manager of the hotel, bringing the number of rooms in its management portfolio to nearly 9,500. THC also brought the deal to Stone-Levy and provided support including due diligence, market reviews and underwriting duties related to the transaction.

The transaction marks the largest hotel sale to close in Los Angeles County this year, according to Alan X. Reay, president of Costa Mesa-based Atlas Hospitality Group. Reay tells GlobeSt.com that one sale that will likely be larger when it closes is the 637-room Renaissance Hollywood hotel, which is expected to bring about $88 million. The 485-room Hyatt Regency in Downtown Los Angeles sold this year for a higher price, $125 million, but that deal also included 678,00 sf of office space, 350,000 sf of retail space and a 1,925-car parking structure.

According to Bill McCreary, president of THC, Tishman will focus on enhancing the performance and operations of the Warner Center property, which was a highly sought-after asset and has already proven to be a strong, consistent performer. THC executives say the acquisition and management change comes at an opportune time, since the hotel is nearing the completion of a major renovation that includes upgrading the entire lobby, restaurant and bar areas; adding 13 new guestrooms; and opening a new, on-property Starbucks. The 16-story Warner Center Marriott Woodland Hills features 22 meeting and banquet facilities totaling 16,000 sf; a restaurant and cocktail lounge; an outdoor and indoor pool; and a health club. Its 476 guest rooms are wired for high-speed Internet access and include cable/satellite TV and telephones equipped with data ports and voice mail.

THC is an affiliate of Tishman Realty & Construction Co., Inc., one of the world's largest real estate managers, developers, owners, builders, and advisors, which is headquartered in New York.