MetLife, Loews List 625-Room Hollywood Hotel For $125M
MetLife Investment Management and Loews Hotels & Resorts are selling their hotel in the heart of Hollywood at a roughly $40M discount to what Loews paid in 2012.
The 625-room property is being marketed for sale with a $125M list price, or about $200K per room, according to The Real Deal, which cited Real Estate Alert.
Loews paid approximately $165M in 2012, the Los Angeles Times reported at the time. MetLife formed a joint venture with Loews the same year and holds a 50% stake in the hotel, according to TRD. Eastdil Secured holds the listing.
The hotel is steps away from the Walk of Fame and the Ovation Hollywood, the retail center formerly known as Hollywood and Highland. It is being marketed as a "redevelopment opportunity" or an opportunity for a new brand to move in, according to TRD.
In 2021, Loews and MetLife secured an approximately $90M refinance from Värde Partners to replace debt from HSBC, TRD reported. That debt was then put into a collateralized loan obligation package. Data from Morningstar indicates the loan matures in May 2026.
In the first half of 2024, Los Angeles County individual hotel sales declined by 6% and dollar volume declined by 79%, though the median price per room increased by 20.6%, according to a mid-year report from Atlas Hospitality Group.
