Los Angeles Hotel Investments

Los Angeles Hotel Investments

Los Angeles Hotel Investments

Hotel Equity Fund – Los Angeles CA Hotel Investments California

Los Angeles – Hotel Market Report 2020

Los Angeles, California, is a thriving global hub that boasts a hotel industry with several dynamic submarkets. The Los Angeles hotel sector (referred to as Los Angeles County) includes a diverse mix of submarkets. There is first-class luxury accommodation in Santa Monica, Beverly Hills, and other similar destinations. As well, there is comfortable lodging in smaller and more industrial regions to the south in Long Beach and to the east in the San Gabriel Valley.

Each submarket has its own unique appeal, and the general LA hotel industry has a history of significant and consistent growth.

The ADR (average daily rate) is expected to continue rising in the Los Angeles hotel market. New luxury and upper-upscale hotels will make a positive and energizing impact on the LA industry. An ever-growing corporate demand and increased tourism will also fuel the hospitality sector.

Los Angeles has already proven itself to be a prime location. This vibrant city is a world center for business, entertainment, international trade, media, fashion, science, and education. Now, however, LA is experiencing a further period of expansion due to its tourism industry and technology sector as well as development in other areas.

Obviously, LA tourism flourishes because of the pleasant year-round weather and its miles of sandy beaches. Last year, Los Angeles saw record-breaking tourism revenues with visitors from around the globe including a growing interest from India and China. Tourists added $23.9 billion to the LA economy, and their contribution generated an overall economic impact of $36.6 billion.

Also, corporations feel right at home in this bustling city with its more than 200 million square feet of office space. Indeed, due to recent expansions and consistently growing inventory, today’s Los Angeles can host the nation’s largest conventions.

Global appeal is a huge contributing factor to LA hotel development. Local and international investors (with either personal or business interests or both) are attracted to Los Angeles for several reasons – including everything from the city’s ability to host an ever-increasing number of conventions to the diversity of LA neighborhoods. Los Angeles is a favorite with overseas investors. There is an increased Chinese population in Southern California.

Los Angeles is developer-friendly, and not all cities fall into that category. LA attracts developers; they can encounter challenges in other locations which won’t be an issue in this region. It is much easier to create a top-class project and bring it to life in this marketplace.

Atlas Hospitality Group’s “California Hotel Development Survey 2019 Mid-Year” reported that four hotels (505 rooms) opened in Los Angeles County during the first half of last year. That same data points out that LA County was leading California at 45 hotels with 7,497 total rooms under construction.

The Downtown area alone saw a ton of new development in 2019. With a convention center expansion, and the Staples Center, as well as other retail and commercial projects, LA County’s Downtown market is more vibrant than ever before. Since this area has such diverse economic, cultural, and recreational potential, the Downtown will draw all types of tourists (corporate, leisure, and group) on a year-round basis.

Of course, this hotbed of hotel activity also extends to the Greater LA area. Each well-defined LA neighborhood has its own character, diversity, and charm which add to the multi-cultural vibe of this one-of-a-kind city.

According to STR (a company who tracks supply and demand data for several market categories including the global hotel sector), the Los Angeles Central Business District had 27 hotels (5,125 rooms) in the construction phase during 2019.

During the third quarter of 2019, Lodging Econometrics (L.E.) released a construction pipeline trend report. The findings indicate that the total Los Angeles market has 161 hotels and 26,670 rooms in some stage of development.

Average daily rate and occupancy are on the rise in Los Angeles. As of July 2019, occupancy in LA’s Central Business District rose 2.5% to 86.4%. STR data shows that ADR increased 3.4% to $206.35, and revenue per available room grew by 6% to bring it to $178.28.

Developers recognize the unlimited potential – which is – Los Angeles. Investors and hotel owners are excited about the future of the LA lodging market. Hotel rates in this thriving city are predicted to increase by 1.9% in 2020.

Los Angeles is expected to see tremendous growth, enhancements to its infrastructure, and the addition of varied lodging categories including global brands. LA is one of the premier U.S. markets, and CBRE already forecasts a strong performance for the Los Angeles hotel industry through 2021.




Acquisitions and Investments

Hotel Equity Fund is one of the top hotel investment in Europe, and now expanding to New York City, West Hollywood CA, South Beach Miami Florida, Chicago, San Francisco, Washington DC, London, Paris, Berlin, Toronto, Jerusalem and Tel Aviv Israel, with results that have consistently bested industry averages. Much of this success is a direct result of our focus on investor returns, individual assets, and aligning management with the individual needs of owners. Our combination of strong capitalization through Hotel Equity Fund, and a strong track record of experience offer a level of credibility that is nearly unmatched in the industry.


Investment Criteria

We are aggressively seeking new properties in New York CityWest Hollywood CASouth Beach Miami Florida, ChicagoLos Angeles, San FranciscoWashington DCLondon UKParis,  BerlinToronto ONMontréal Québec, Israel including Tel Aviv and Jerusalem, and feel that our centralized operation of business in New York offers the very type of responsiveness, professionalism and capital resources the industry has been seeking. Please click here to review the investment criteria.


Development Opportunities

Our Hotel Equity Fund owned hotel and resort development subsidiary, Hotel Equity Fund Development, has extensive experience in resort, hotel, and golf course development, with recent hotel development and hotel redevelopment projects totaling over $2 billion. Our projects are well known for meeting market demand and for attention to both design and operating detail. Our culture of “listening to the customer” is at the heart of our development process and has allowed properties to excel in both operating performance and value retention.


Boutique Hotel Investments

Boutique hotels, also known as lifestyle hotels, vary in shape and size; however, all boutique hotels rely heavily on creative energy and highly personalized service to compete in the overall hotel industry.

Hotel Equity Fund is a respected financial hotel investment firm, utilizing hotel equity funds to assist its hotel real estate developers and partners in gaining favorable returns on their investments. Hotel Equity Fund works with a range of hospitality firms to increase the efficiency and effectiveness of individual hotel properties, ranging from boutique hotels with excellent F&B, premium brands to mid to up-scale well-located properties.

Since 1980, the Hotel Equity Fund and Hotel Equity Fund Partners Investment Program have invested over $2 billion into quality hotel real estate properties with aggregate transaction capitalization of nearly $3 billion. By partnering experienced advisors with each investment partner, Hotel Equity Fund ensures that each property is equipped with a creative vision and practical management plan to achieve long-term financial sustainability and success.


Hotel Developments & Acquisitions

Hotel Equity Fund routinely assesses joint venture development opportunities which provide long-term alignment of interests for both Hotel Equity Fund and prospective partners in New York CityWest Hollywood CASouth Beach Miami Florida, Chicago, Los AngelesSan FranciscoWashington DC, Toronto Canada, LondonParis, Jerusalem and Tel Aviv Israel.

Experienced, multi-brand, investment-grade hotel developers, Hotel Equity Fund will take a project from dirt or acquiring an Landmark Building for hotel conversion to a stabilized hotel through hotel disposition. Offering a variety of hotel investment services, our specialized team can meet your unique hotel project requirements including, but not limited to, the following:


  • Assist in hotel site selection and property evaluation.


  • Evaluate benefits of and selection from available boutique brand or a national brands.




  • Make recommendations regarding legal entity and JV agreement options.Prepare preliminary hotel construction cost estimates.


  • Offer professional market study or appraisal recommendations.


  • Assist in selection and coordination of attorney, architect, civil engineer, project manager, general contractor,


  • FF&E procurement and interior design.


  • Provide construction, financing, permanent debt, refinancing and disposition roles.


  • Execute long-term management contract services.

Hotel Equity Fund’s proven investment methods mitigate risk and encourage success, combining our investment and management fluency with the strength and potential of partner assets. If you would like to read more about the positive impact we have made with our hotel equity fund, please explore the entirety of this website.