After the COVID-19 pandemic challenged Southern California’s hotel industry, the region is bouncing back with a record amount of hotel sales. In a more recent transaction, The Orlando Hotel in Los Angeles was acquired by Timberlane Partners for approximately $38.435 million, or $404,578 per room, according to industry sources.
Located at 8384 West 3rd Street in Los Angeles, the property is a 95-key boutique hotel built in 1984. According to public records, the hotel has been owned by an entity associated with PK Equities since it was initially constructed.
According to the property website, the hotel offers large suites with coffee/tea making facilities, blackout drapes and televisions. Other guest amenities include a spa and salon, pool, fitness center, lounge, bar, restaurant and valet services.
Located west of downtown Los Angeles, the property is situated between both Beverly Hills and West Hollywood. The central location puts the property in close proximity to a variety of entertainment, dining and shopping centers, including the Beverly Center and The Grove. The property is also just a short drive from the Los Angeles International Airport and is just down the street from the 3rd and Orlando bus stop.
The property’s new owner, Timberlane Partners, is a real estate investment firm, which focuses primarily on acquiring multi-family and hospitality assets throughout Utah, Washington and California. With the acquisition of the Orlando Hotel, the investment firm secured $32.25 million in bridge financing, according to Northmarq, which arranged the loan.
“Hospitality lenders have been very selective since the start of the pandemic. However, we were able to get the lender comfortable with this transaction because of the prominent location and Timberlane’s excellent track record with hotels,” Jake Leibsohn, vice president of NorthMarq’s Seattle office, said in a statement. “Everyone involved played a crucial role in making this a smooth process.”
While the COVID-19 pandemic may have caused some hospitality lenders to be selective, recent reports show the industry is continuing to bounce back. According to a California hotel sales survey from Atlas Hospitality Group, sales in Southern California’s hotel industry are picking up, with Los Angeles showing a 200 percent increase in sales so far this year compared to the past six months of 2020. Across the state, the report showed individual hotel sales are up approximately 157 percent, which is the largest increase in recorded history. This year, the dollar volume of hotel sales reached $5.2 billion in the state of California.