Southern California seems to be the perfect hospitality market for Chinese investors as two recent hotel deals were made by different companies entering the city’s real estate market. Chinese real estate developer Hazens Investment completed the acquisition of the Sheraton Gateway Los Angeles Hotel for a fee of $96 million, while earlier this month the Torrance Marriott South Bay was acquired by the Sichuan Xinglida Group Enterprises Co. for $74 million.
The Sheraton Gateway Los Angeles Hotel is a 15-story facility that is located in the immediate vicinity of Los Angeles International Airport. According to the Los Angeles Times, the property was sold by an affiliate of Long Wharf Real Estate Partners, with representation from Maxim Hotel Brokerage Inc.
The 802-key Sheraton Gateway is the first property acquired by Hazens in the U.S. The new owner will keep Pyramid Hotel Group on as the hotel manager, but will carry out a number of improvements to the hotel. The lobby, common areas and guest rooms will be upgraded by Hazens, in an effort to maintain the facility’s appeal as a site for a number of business meetings.
The Torrance Marriott South Bay is a 17-story property located near the Del Amo Fashion Center, an 8.4-acre mall, one of the largest properties of its kind in the entire U.S. The property was acquired by XLD Group, a subsidiary of Chinese real estate company Sichuan Xinglida Group Enterprises Co., an entity responsible for a number of mixed-use developments in China. The deal was brokered by Jones Lang LaSalle on behalf of seller DiamondRock Hospitality Co. The 487-key hotel was built in 1987 and underwent its most recent renovation in 2007.The new owner will give the property a makeover and raise its profile as a more upscale location, while Marriott will stay on as the operator.