Strauss cites the hotel's strategic location on West Century Boulevard next to Los Angeles International Airport. He points out that the hotel was recently renovated, features 103 suites and "is a first choice for many travelers because of its contemporary style and immediate proximity to Terminal One."
"The LAX hotel market has performed extremely well in recent years with occupancies for the major hotels topping 80% and RevPAR increases at almost 8% year-to-date," Strauss says. He says that these strong underlying fundamentals, coupled with the high cost of new construction and lack of available sites around LAX, attracted a variety of domestic and international investors that pursued the transaction.
Strauss adds that the sale of the Sheraton, following the trade of Hyatt Century City in the second quarter, "further demonstrates strong investor appetite for high quality hotel properties in the greater Los Angeles area despite a more challenging debt environment and concerns about the overall economy." The $65 million in acquisition financing thatJones Lang LaSalle's Real Estate Investment Banking team secured, led by David Christensen and Jeffrey Davis, was "aggressively priced," JLL notes.
The Sheraton LAX includes approximately 48,000 sf of meeting space with 38 flexible meeting rooms and event spaces. The property also features four food and beverage outlets as well as a fitness center and an outdoor pool.
Harp plans on continuing a franchise affiliation with Sheraton Hotels & Resorts. Chicago-based Portfolio Hotels & Resorts will assume management company responsibilities following the closing, according to Alan Tantleff, an executive vice president for Jones Lang LaSalle Hotels.
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