Northern, WI 04/22/2013 (usastockreport) – The Blackstone Group L.P (NYSE:BX) (Closed: $20.04, Up by 0.30%) plans on selling its London West Hollywood hotel. The global head of real estate at the world’s largest private equity firm said that they wish to take advantage of the Los Angeles lodging recovery. In an interview he said that the firm has owned this particular asset for numerous years, has invested it in and that it had been performing well. Blackstone had spent $50 million on its renovation work. This hotel is situated just off the Sunset Boulevard and houses a Gordon Ramsay restaurant. It is a part of the LXR Luxury Resorts & Hotels unit.
Strong belief in lodging delivery
In December another LXR property, the Golden Door Spa was sold by the firm. This is located in Escondido and was sold for an amount of $24.8 million. The Casa Marina resort in Key West, Florida and the El Conquistador Resort in Puerto Rico are included in the portfolio. Gray said that even during the downturn, Blackstone strongly believed in the lodging delivery and it continues to do so and they will always be on the look-out for investment opportunities. Lodging had gone through a severe downturn and numerous assets were ridden with financial burdens which resulted in opportunities for buying hotels.
Hawaii- the way to go
Gray said that the brokerage, Eastdil Secured was hired by Blackstone to assist in the sale of London West Hollywood though he did not disclose the expected listing price for this property. According to the hotel’s website, for the April 29 week, a night at the hotel starts at $449. He said that as the New York-based firm continues scouring for new lodging investments it is training its sights on markets such as Hawaii that has few new hotels. A couple of days ago a person in the know had revealed that Blackstone will be buying the leasehold for the Hyatt Regency Waikiki Beach Resort and Spa for an amount of $450 million and has plans of remodeling it.
He said that some places like New York City are proving to be a challenge as the new supply there is higher in comparison to San Francisco or Oahu. These two latter places have a very limited supply. Blackstone is the biggest private equity investor in the real-estate market and manages $59.5 billion worth of property assets.