Los Angeles County hotel sales reached a record $1.7 billion in 2017, according to a year-end report by Irvine-based Atlas Hospitality Group, a real estate agency specializing in hotel sales.
The figure amounts to $344 million more in overall sales than in 2016 — with $150 million of those sales taking place in the Valley region.
In 2017, five hotels traded hands in the San Fernando Valley. In July, the 351-room Hilton Los Angeles North in Glendale sold for almost $73.5 million to Arcadia-based real estate development company Kam Sang Co. Inc. The price represented more than $209,000 per room.
Also in the Valley, Paul P. Kuo sold North Hills-situated, 21-room Sepulveda Motel at 8931 Sepulveda Blvd. for $2 million in May. In July, Brighton Management purchased the 74-room Ramada in Chatsworth, located at 21340 Devonshire St., for $6.2 million from Chatsworth Investment Group. A month later, Wheelock Street Capital’s 262-room Hyatt Regency, at 880 S. Westlake Blvd. in Westlake Village, sold for $63 million to Southwest Value Partners Enterprises, followed last December by the sale of Encino’s 26-room Tokyo Princess Inn for $4.8 million in a transaction between Wayne Lai and Renee Cohen.
According to the report, in 2017 the L.A. hotel market added 4,300 rooms. In 2018, the hotel industry is poised to surpass all previous records for new rooms. The more than 5,000 rooms currently under construction throughout L.A. County account for a quarter of all rooms being built throughout California.
Atlas estimates that about 10,000 new rooms will see completion in L.A. County within a few years. As the Business Journal reported earlier this month, hundreds of those rooms will open in the San Fernando, Santa Clarita, Conejo and Antelope valleys within the next couple of years.