Southern California Hotels Floored by Economy, Go on the Market
In the past six weeks several Southern California Hotels have changed hands, been put up for sale, or sold.
The latest includes the luxury Southern California Four Seasons Resort and a popular Los Angeles area Sheraton (left).
In Carlsbad, Four Seasons and Aviara Resort owners went to arbitration over differences in running the property. According to the Los Angeles Times, the result of arbitration is that the agreement between the two will end.
Aviara Resort (below), whose ownership is led by Broadreach Capital Partners, found a new manager for it, so the Four Seasons Aviara Resort in Carlsbad, Calif. will become the Park Hyatt Aviara Resort when it switches control on June 21, 2010.
Aviara property owners selected Park Hyatt to manage the 329-room lodging under its luxury portfolio. Four Seasons, however, will continue to manage the 132-room time-share villas at Aviara.
A bit farther north, the Sheraton Hotel in Universal City is for sale. The 20-story, 451-room hotel was purchased in 2007 for $122 million. Developer Lowe Enterprises put in $25 million in upgrades to the rooms and main areas. The hotel was valued at $75 million in February of this year.
If recent sales are any indicator, the Sheraton's owners should prepare for a disappointment. The Marriott Downtown Los Angeles went into foreclosure and sold in March to a Chinese firm for an estimated $60 million, roughly half of what it sold for in 2007.
See homes for sale in Los Angeles, Calif. at AOL Real Estate.