Sources have told HOTELS that a letter of intent has been signed for Northwood Investors, New York City, to acquire the 200-room The London West Hollywood in California from Blackstone for US$195 million (US$975,000/key).
The deal is expected to be finalized within a few weeks and close in October.
The hotel’s brand is not expected to change and Northwood Hospitality LLC will assume management of one of the few remaining asset that sits under Blackstone’s LXR Luxury Resorts & Hotels portfolio.
Northwood is expected to build-out rooms, especially the specialty suites, and look for ways to improve F&B. The 9th floor is currently unfinished space, and Northwood is expected to add 21 rooms, as well as two penthouse suites on the 10th floor. The stable asset is reportedly one of highest performing hotels in West Hollywood market.
Analyst David Loeb of R.W. Baird said the transaction supports valuation in the supply-constrained markets of West Los Angeles and provides a positive read-through for the LaSalle Hotel Properties and Pebblebrook Hotel Trust REITs, which have sizable exposure to these well-performing submarkets.
