UPDATE, June 30, 2022, 1:27 p.m.: The fund management subsidiary of Related Companies has spent about $115 million to buy a stake in a new hotel in Hollywood, The real deal has learned.
Ownership of the 220-key Godfrey Hotel Hollywood was transferred to an entity related to Related Fund Management in New York for about $522,700 per key as part of a recapitalization effort, according to public ownership filings last week. with Los Angeles County. Justin Metz, general manager of the subsidiary, was a signatory of this entity.
The company also secured a $76.5 million loan from an AllianceBernstein fund as part of the deal for the property, located at 1400 North Cahuenga Boulevard, records show. Related declined to comment.
Chicago-based developer Oxford Capital Group – affiliated with Oxford Hotels and Resorts – has sold stakes in the property, after working on its development for years. The project was a joint venture between Oxford and Goldman Sachs. Oxford will continue to hold a stake in the property, although Goldman has pulled out completely, a source familiar with the deal said. The real deal.
The company bought the hotel site for $16.5 million in 2016 and opened the property last year. The hotel is one of four Godfrey-branded hotels across the country, the others being in Boston, Chicago and Tampa.
Despite the pandemic’s effect on occupancy rates, investors have continued to pump money into California hotels, with the past year setting new records for the asset class. Investors spent a total of $9.9 billion on hotels in California in 2021, with 510 hotels traded, according to hotel brokerage Atlas Hospitality Group. The previous record was set in 2014, when around 400 hotels were sold.
Related follows suit, with the new acquisition, Related adds to its bets on the recovery of the hotel sector in Los Angeles
Next month, the company plans to open its billion-dollar hotel, residential and commercial project called the Grand LA. The project, designed by Frank Gehry, will include the 28-story Conrad Hotel and an adjacent 45-story apartment tower.