LOS ANGELES—Pacifica Hotels, one of the largest owners of oceanfront properties, has purchased the Hermosa Beach Hotel from a private investor. The hotel has 80 guestrooms and is located within walking distance to the Pacific Ocean, making it a great fit with the investor's hotel portfolio. The purchase price of the property is undisclosed.

Located at 2515 Pacific Coast Highway, the property features a good amenities package that includes an award-winning Japanese garden. Other amenities include a heated pool and spa, fitness center and fully equipped business center. Pacifica Hotels plans to renovate the property, although there is no information available yet on the amount of additional capital they plan to invest or what the renovation will entail.

Pacifica Hotels has more then 25 oceanfront properties in its portfolio, and frequently performs some renovations to the properties it purchases. Sarhan Mheni, a senior associate at Marcus & Millichap, represented both the buyer and the seller in the transaction. The brokers and buyer were unable to provide an additional comment before the publication of this story.

This purchase illustrates the increasing investor demand for hotel properties in Los Angeles. Recently, several investors have been snatching up older hotel product with plans to renovate, like Pebblebrook Hotel Trust, which recently purchased the Hotel Palomar for $79 million. Development for hotel properties is also seeing an uptick and is spreading out from the downtown area. Most recently, R.D. Olson Development paid top dollar for a development site in Hollywood, where it plans to build a boutique hotel.