Boulevard Dreams

The opening of a new boutique hotel this week on Ventura Boulevard in Studio City is the latest thing to happen in an increasingly active Valley hospitality market. The opening of the BLVD Hotel + Spa, on Feb. 4 will make the site the third boutique hotel in the San Fernando Valley, and the only one in its immediate area. The two other local boutique hotels, the Hotel Amarano and the Coast Anabelle Hotel, are located in Burbank. Because the new hotel has only 58 rooms, industry experts do not expect it to have a major effect on the Valley’s room inventory but they do see it as boosting the area’s image as a place to stay while visiting Los Angeles, especially Hollywood. Other recent notable changes seen as boosting the hospitality industry locally are occurring at the Sheraton Universal Hotel, Sportsman’s Lodge, Hotel Amarano and Universal Studios Hollywood. Of the BLVD’s 58 rooms, 30 are suites. The hotel has an indoor pool, a bar, a spa and a fitness center. Some of the larger suites include full kitchens with appliances, in-room lounges and private patios with garden views and BBQ grills. New: BLVD Hotel + Spa. The hotel’s owner, Hollywood-based PNK Group that owns several other local hotels, is aiming for a trendier inside-Hollywood atmosphere, with plans to offer packages that include tickets to Universal Studios Hollywood, public screenings by local production studios and other attractions. Suites will be named after famous boulevards, such as Sunset Boulevard, Hollywood Boulevard and Ventura Boulevard, said Sagar Kumar, managing director for PNK Group and for the hotel. “We envision people coming to the BLVD to get the Hollywood experience,” said Kumar, adding that the limited-service hotel’s size allows guests a more relaxed environment than a large, full-service hotel. The BLVD’s owners also hope to attract a variety of guests, from the younger adult crowd to Universal Studios Hollywood tourists to studio executives. Room rates will range from $140 to $400 a night. Building the BLVD The Universal City Inn hotel used to stand where the BLVD is now, located on Ventura Boulevard between Lankershim Boulevard and Vineland Avenue. The PNK Group bought the 20,000-squre-foot hotel in 1996 and operated it until they decided they wanted to go for something edgier, Kumar said. They started building the BLVD during the first quarter of 2007. However, the down economy and lending difficulties led to a halt in the $10-million construction project in December 2009. Building resumed on the 48,000-square-foot new hotel in the spring of 2010 and was completed this month. “We built this hotel at the worst economic time, and we’re opening on an incline, or at least an economic turnaround,” Kumar said, adding that occupancy and room rates improved in 2010 at the company’s other hotels. Mohammad Yousuf, who will serve as the hotel’s general manager, said he expects the hotel to generate occupancy rates of 60 percent to 75 percent by the middle of the year and rates of 85 percent to 96 percent by July or August. The hotel has already booked 24 rooms by guests planning to attend next month’s NBA All-Star events in downtown Los Angeles, as well as other group bookings. Industry experts say the hotel’s 58 rooms are not a major addition to the local hotel market’s overall inventory because they are replacing another hotel. It does, however, help the local tourism industry overall. “As far as the bottom line, you took an older hotel and you converted money back into the property – that’s a good thing,” said Jeff Lugosi, senior vice president of Colliers PKF Consulting USA’s Los Angeles office. PKF is a hospitality industry consultant. He added that a boutique hotel should fit well in the East Valley. “It’s a market that can handle boutique hotels because of its proximity to Hollywood, Universal Studios and the San Fernando Valley,” he said. Image builder Bert Seneca, chairman of the San Fernando Valley Conference and Visitors Bureau, said he also sees a new boutique hotel as a positive addition to the area. “I think it adds a different element, and it only helps the area unto itself,” Seneca said. “It helps the Valley’s image when you can get boutique hotels of this nature.” Business has generally been improving for the San Fernando Valley’s hotels. For January through October in 2010, the average hotel occupancy rate rose to 69.1 percent from 65 percent during the same period in 2009, according to Colliers PKF Consulting figures. The average room rate, however, dropped to $120.47 from $121.23 the year before. He also listed several other developments in the local market. Chinese real estate development company Shenzhen New World Group Co. purchased the Sheraton Universal Hotel this month. The move is expected to increase Chinese tourism in the area. The company that owns Sportsman’s Lodge is working on plans to bring an Equinox gym to its property. NBC Universal has proposed “NBC Universal Evolution Plan,” which includes changes to the company’s theme park and CityWalk site among other development goals. The plan is in the public comment period of its environmental impact report. Changes at Universal For CityWalk, the company proposes to add a 500-room hotel, replace its amphitheater with a smaller venue, expand retail and dining options and implement other improvements. For Universal Studios Hollywood, the plan would add 146,000 square feet of attractions. “Obviously the 800-pound gorilla is what’s going to happen at Universal,” Lugosi said. The Hotel Amarano in Burbank will also make improvements. Tom Whelan, the general manager for the 99-room boutique hotel, said 32 rooms and a swimming pool will be added with construction starting in the spring in order to boost weekend business, add more room availability and increase occupancy rates. Whelan added that the he does not believe the new boutique hotel will take away business from the Hotel Amarano since they offer different levels of services. His hotel offers meeting space, 24-hour room service and a restaurant, all of which the BLVD does not have. “They should do reasonably well with the guests that are going to Universal Studios,” Whelan said. “I’m sure they’ll do fine for their market.”