Los Angeles City Attorney Mike Feuer announced Thursday that his office has reached a $250,000 settlement with the owner of Motel 6 in Sylmar that will also include operational and management changes.
Under the agreement, hotel chain owner G6 Hospitality Property is required to implement new security and management practices for three years to mitigate the alleged sales of drugs, gang activity and prostitution that the attorney’s office has found to have occurred at the property’s 12775 Encinitas Ave. address. Additionally, G6 Hospitality will pay $250,000 toward a new program targeting human trafficking, Feuer’s office said.
“This comprehensive settlement—negotiated after we intervened to stop what we alleged was rampant criminal activity—requires Motel 6 to live up to its responsibilities to guests and neighbors alike,” Feuer said in a statement.
The Motel 6 chain is owned by N.Y. hedge fund Blackstone Group, according to CoStar Group Inc. and confirmed by Feuer’s office. One of the company’s funds, the Blackstone Real Estate Partners VII, bought the chain in 2012 as part of a larger portfolio purchase. The company was unable to return a call for comment in time for publication.
Deputy City Attorneys Suzanne Spillane and Christian Commelin of Feuer’s citywide nuisance abatement program managed the negotiations.
Under the agreement, G6 Hospitality will implement an around-the-clock manager presence, strict guest registration requirements, enforcement of a ‘do not rent’ list of known criminals, restrictions on stays of less than 24 hours and cash payments for room rentals; a 48-camera video monitoring system and trained security guards; secure access to the parking lot for guests; notices about human trafficking and new policies prohibiting known criminals from accessing the property, Feuer’s office said. It will also block access to Backpage.com, a prostitution-oriented website. Additionally, employees will be trained to detect human trafficking, and an executive member of G6 will conduct inspections for criminal activity and file reports.
The original lawsuit alleging criminal activity at the hotel was filed in November of 2016.