"The roughly $44 million trade of the boutique hotel at 900 Hammond Street, near Sunset Boulevard, amounts to about $333,000 a room. That is nowhere near a record trade, but a sale is a sale in an area such as Los Angeles where hoteliers are defaulting on debt and facing forced sales and the real estate investment trust's latest strategy is selling hotels and repurchasing shares at discount."
"L.A. is a difficult market to sell in today due to unfriendly government policies and the lagging impact from the fires, strikes, ICE, National Guard, Jon Bortz, Pebblebrook chairman and chief executive, said. Measure ULA, or the so-called mansion tax, doesn't help either, but West Hollywood commercial deals are exempt. Another issue, the perception that homelessness is rampant, contributes to declining tourism, and therefore revenues."
Pebblebrook acquired LaSalle Hotel Properties after a bidding battle with Blackstone and sold the 133-key Montrose boutique hotel at 900 Hammond Street in West Hollywood for roughly $44 million, about $333,000 per room. The company is pursuing asset sales and share repurchases at discounts. The Los Angeles hotel market is experiencing defaults, forced sales, and reduced demand driven by unfriendly policies, post-fire and labor impacts, and perceptions of widespread homelessness that depress tourism and revenues. Pebblebrook also reported another hotel under contract at $72 million, while a Woodland Hills office auction was postponed.
Read at therealdeal.com
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