$137M Mondrian Sale Nears Peak Pricing

WEST HOLLYWOOD, CA-Pebblebrook Hotel Trust of Bethesda, MD has agreed to buy the 237-room Mondrian Hotel from New York City-based Morgans Hotel Group for $137 million, a price per room of $580,000 that approaches peak pricing of 2007-2008, according to one hotel industry consultant. Alan Reay, founder and president of Irvine, CA-based Atlas Hospitality Group, tells GlobeSt.com that the price of the pending sale “is probably close to what the hotel would have traded for back in the 2007/2008 peak.” Reay calls the deal “one more example of the prices REITs are now paying for well-located hotels.”

Morgans expects the Mondrian sale, which was a direct deal between buyer and seller, to close this quarter. The New York City-based company will continue to operate the hotel, which is at 8440 Sunset Blvd., under a 20-year management agreement with one 10-year extension option.