There is a hotel boom going on, with West Hollywood a leader in some respects.
New hotel development in California in 2017 exceeded the peak set in 2008, according to a report by Atlas Hospitality Group, a hotel sales and investment organization. Atlas reports that 10,793 rooms opened in 66 hotels across the state. The previous record was 10,286 rooms in 2008.
Hotel sales in Los Angeles County also hit a new record last year. The $1.7 billion in hotel sales last year is an increase of $344 million over sales in 2016. Atlas reports that the median hotel room purchase price in Los Angeles grew to $127,211, the highest it has been since 2008.
That record was achieved in part by the sale of two hotels in West Hollywood, which Atlas reports were the largest acquisitions in L.A. last year
Starwood’s purchase of the Jeremy on Sunset Boulevard in June fo $280 million from the C.I.M. Group was the largest sale in L.A. County. The biggest buy in terms of price per room was Jeff Klein’s decision last year to buy out the majority owner of the 81-room Sunset Tower Hotel. Klein paid or $1.13 million per room for a total of $90 million.
The Real Deal, a commercial real estate news site, reports that that this year, “the hotel industry is expected to break all previous records for new rooms, including the one set last year when 4,300 opened. To give some perspective, the more than 5,000 rooms now under construction in L.A. County account for 25 percent of all rooms in the works throughout California.”
West Hollywood, a geographically small city of only 1.89 square miles, is home to 20 hotels with more on the way. The latest to open is the La Peer on La Peer Drive just north of Melrose. Under construction is the 190-room Edition on Sunset Boulevard and in the planning process is the 240-room Robertson Lane. Several other projects, including ones on Holloway Drive and La Brea Avenue, have been proposed by developers.
Steve Witkoff, the developer of The Edition, has called out West Hollywood as an ideal hotel market. The Edition “is the best located hotel within West Hollywood, a high barrier to entry market and one of the highest RevPAR submarkets in the country,” said. (RevPAR is hotel industry speak for revenue per available room.)
John Duran…there is nothing that needs to be said about this useless, never seen a developer’s handout he didn’t like, tasteless embarrassment. And people keep voting him in. ENOUGH with the hotels already!! Our traffic is paralyzing for a village the size of West Hollywood. It is obscene how shameless the PAY FOR PLAY is conducted at City Hall.
Perhaps there is a position waiting for John Duran in the sordid “birds of a feather”, ” feather your nest” Trump Administration. Party affiliation notwithstanding, Duran could actually become their “token” hiding an abundance of ills.
Re: John Duran: Many have complaints & issues with Mr. Duran. Unfortunately, in the past, low voter turnout out & familiarity with his name has given us a less than effective Council Member. HOWEVER in the National Awakening to Sexual Misconduct being a zero tolerance behavior for elected representatives. Mr. Duran has has serious sexual misconduct allegations & settlement paid out. We can’t call for removing all such behavior BUT OUR OWN ELECTED OFFICIALS IN WeHo. #TimesUp
What’s the potential project on Holloway?
Thanks to the “Pay for Play” West Hollywood City Council politicians, especially Duran and Heilman, for this endless parade of hotels lacking any architectural merit.
All these hotels are candidates for Frank Gehry’s “98% of modern architecture is sh-t!” Recall that Duran was saying he just likes things that are “pretty!” This is the kind of bad taste that has turned the Sunset Strip into a collection of hideous billboards and ugly new buildings.
‘
The chic Sunset Tower, reflecting the glamour that once was the Sunset Strip, is now engulfed by this collection of design mediocrity and schlock billboards.
HOW DOES THE BENEFIT RESIDENTS? All I read about is need for new low income housing, updates in always growing hundreds of millions of dollars for WeHo Park, but at the same time the city is always “looking for a money to fund” any real needed issues in WeHo affecting: PERSONAL SAFETY, PROPERTY SAFETY, MAILBOX SECURITY, ENDLESS YEARS OF SERIOUS CAR ACCIDENTS ON FOUNTAIN, PARKING FOR RESIDENTS, HOMELESS CRIME, LOW INCOME HOUSING UNITS, “TARA” BEING FITTED TO BE THE PUBLIC GREEN SPACE THE CHARITABLE GIFT TO THE CITY (after millions city spent trying to take the property for other use,… Read more »
Time for all the residents to move out and just rent a room.
City leaders enjoying their game of Monopoly will soon make us transients in our own city
As John Duran frequently states: “People are just passing through”.
He is unfortunately correct but hopelessly misguided for the transient hotel guests have little or no respect for their surroundings because they “are just passing through”.
Does anyone have their eye on the ball?
Jeff Klein’s Sunset Tower is our finest property. His efforts with a property I have known and visited since it was The St. James Club where I was a member is remarkable. It’s truly a jewel for the Southland and West Hollywood as a hotel, restaurant and an event venue. I was she more hoteliers had his excellent taste in terms of design and exceptional service.