TORRANCE, CA-DiamondRock Hospitality Co. has completed the sale of the Torrance Marriott South Bay. A third party unaffiliated with the company purchased the hotel for $76 million, including credit for the hotel's replacement reserve.

"The sale of the Torrance Marriott marks the continued successful execution of our strategic capital recycling program,” says Mark W. Brugger, president and CEO of DiamondRock Hospitality Co., a public REIT with a portfolio of 26 premium hotels in gateway and resort markets around the US. The REIT plans to reinvest the capital from the sale into the Hilton Garden Inn currently under construction in New York City's Times Square. “ We believe this is a winning formula,” he says.

The 487-room, 17-story hotel, located in the East Los Angeles submarket, has hotel generated $5.4 million in the last fiscal year. Jones Lang LaSalle represented the seller in the transaction.

Several hotel brands are looking to invest in Downtown Los Angeles. Later this year, the boutique Ace Hotel will open its doors in Downtown Los Angeles, and in an earlier story, GlobeSt.com reported that the SBE Entertainment is considering downtown for a new SLS Hotel, which would be the brand's third Los Angeles location. Also under way downtown are the Wilshire Grand and Grand Avenue hotel developments.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

Hotels
Los Angeles
National