The hotel, which is about a mile from Bob Hope Airport, ranks as one of the largest in Los Angeles in terms of meeting space, with 50,000 sf. The owners market it as the only hotel in the San Fernando Valley with a convention center.
The sale is the latest in a series of recent Southern California deals by the Chicago-based REIT, which recently struck a deal to buy the 393-room Ritz-Carlton hotel and resort from Strategic Hotel Capital LLC for $330 million plus assumed debt of approximately $8.5 million. The acquisition of the beach front hotel in South Orange County is believed to be the highest price per room ever paid for a hotel in California.
In another recent Southern California deal, Strategic agreed to sell its Marriott Rancho Las Palmas Resort & Spa in Rancho Mirage to KSL Capital Partners of Denver for $56 million.
The sale of the Burbank property reflects trends that have marked the hotel market in Southern California in recent years. Among these are a rise in the median price per room sold in California of 19.4% over the past year and a surge in rooms under construction, according to Irvine-based Atlas Hospitality Group.
At the same time, the number of hotel rooms under construction in the Southland has risen, climbing by 52.8% to 1,336 rooms in Los Angeles County, increasing 173% to 898 rooms in Riverside County and zooming by 551% to 3,045 rooms in San Diego County.
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