When JLL drew the assignment to market the property for sale, Lallani described it as located in a market with high barriers to entry and offered at a significant discount to replacement cost, especially given the lack of land available for development and today's high construction costs. Jeremie Babinet, vice president for Jones Lang LaSalle Hotels, cites the property's consistently strong operating history.
Terms of the deal were not disclosed. Prices overall for hotels in Los Angeles County average about $80,000 per room, according to recent market surveys, but prices for full-service properties in the county have reached up to $150,000 per room in recent years, depending on the specific hotel and the individual submarket.
In another LAX submarket sale of a full-service property that closed earlier this year, Sunstone Hotel Investors Inc. of San Clemente spent about $130,000 per room to acquire the 499-room LAX Renaissance hotel, a newly renovated property close to the Los Angeles International Airport. The San Clemente-based REIT acquired the hotel from Chicago-based Walton Street Capital at one of the highest prices ever paid per room in the Los Angeles International Airport submarket. Nonetheless, that price was still well below replacement cost, according to market sources.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.