CENTURY CITY, CA-Sunstone Hotel Investors Inc. and Global Hyatt Corp. have struck a deal to acquire the 728-room Century Plaza Hotel & Spa for $293 million before expenses and renovation costs. The San Clemente-based hotel REIT and Hyatt plan to reposition the property as Hyatt Regency Century Plaza.The deal will provide Hyatt a continued presence in Century City, according to Alan X. Reay, president of Costa Mesa-based Atlas Hospitality Group, who tells GlobeSt.com that the flag on a nearby Park Hyatt in Century City is due to expire this year and that hotel is expected to either be re-flagged or go independent. The Century Plaza also has substantially more rooms than the 367-room Park Hyatt and a higher profile in the market, adds Reay, whose company is a hotel industry consulting and brokerage firm.The Sunstone contract to acquire the Century Plaza Hotel & Spa is subject to customary closing requirements and conditions, but the REIT says that once the deal closes it plans to “immediately embark on a $22.5-million renovation that will include all guest rooms and common areas and the addition of a Regency level and Hyatt Regency Club.” Sunstone plans to obtain approximately $175 million of debt financing to finance a portion of the purchase price, which is expected to close in the fourth quarter of this year. The REIT will acquire one of the highest-profile hotels in Los Angeles, a site that is popular for meetings, conventions and other business gatherings.Sunstone will be acquiring the Century Plaza from the Phoenix-based Pivotal Group, which bought the Century Plaza and the adjacent St. Regis Hotel for $260 million in 1999, according to Reay. Pivotal subsequently invested about $60 million in the two properties and later sold the St. Regis for $123 million to a group that plans to convert the St. Regis site to condominiums.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.