While California’s hotel industry has largely seen a decrease in property sales following a record-setting year in 2021, busy markets throughout Southern California have continued to see large transactions.
In one recent transaction that closed this month, the Four Points by Sheraton at LAX has sold for $54.5 million, or about $97,148 per room. Property records indicate that the property was purchased by an entity affiliated with Cobby Pourtavosi, an investor and president at Capital Insight. The seller in the transaction is New America Phoenix LLC, an entity affiliated with Fuyang Gao.
The Marriott-branded hotel is located at 9750 Airport Boulevard and offers 561 guest rooms.
According to the property’s website, the hotel also offers a number of guest amenities, including grab & go food options, fitness center, an outdoor swimming pool and more than 14,800 square feet of meeting and event space.
The hotel is conveniently located just outside of the Los Angeles International Airport and is also just several miles from downtown Los Angeles. Nearby Interstates 405 and 105 also provide easy access to the rest of the Greater Los Angeles area. The hotel is also closely situated to several other hospitality properties, some of which have also recently been traded.
In one recent transaction that closed on Sept. 2, NewcrestImage purchased a La Quinta Inn & Suites at 5249 W. Century Blvd., just down the road from the Four Point by Sheraton hotel. According to previous reporting from The Registry, the 281-room hotel sold for $44.2 million, or $157,295 per key. The property was sold by Highgate Hotels.
Despite recent deals in Los Angeles, the hotel industry throughout California has seen an overall decline in sales when compared to 2021. According to Atlas Hospitality Group’s 2022 Mid-Year California Hotel Sales Survey, individual hotel sales declined by 9.9 percent across the state. At the same time, total dollar volume fell by 33.6 percent.
However, the median price per room did increase during 2022 by about 12.7 to a new California record at $143,443 per room. While transactions as a whole are expected to continue at a slower pace, California still reported the second highest number of sales on record and the third highest in terms of dollar volume, according to the report.