One of Downtown’s most high- profile hotels has traded hands. Last month the Ace Hotel on Broadway was sold for a reported $117 million.
The Ace Hotel Group confirmed the sale, saying that its partners in Ace Hotel Downtown Los Angeles sold the property to another unnamed investor last month.
“This is common process in the hotel investment cycle and something we had both expected and embraced,” a spokesperson for the Ace Hotel Group told Los Angeles Downtown News. “The hotel will continue to be operated by our team at Atelier Ace as an Ace Hotel along with the Theatre at Ace Hotel.”
The Fashion District space, located at 929 S. Broadway, was one of the catalysts for commercial and hospitality growth on the southern end of Broadway since it opened in 2014. The 182-room hotel includes a rooftop pool and bar, plus a ground-floor restaurant. The Theatre at Ace Hotel, in the 1,600-seat former United Artists Theatre, regularly attracts major musical artists and film screenings, and is the home for UCLA’s Center for the Art of Performance’s Downtown Los Angeles programming. CAP UCLA’s programming runs from fall-spring, with upcoming shows including Latin Grammy winner Buika in January and Phillip Glass and Jerry Quickley’s show Whistleblower in March.
The sale is not unusual, according to Bruce Baltin, managing director for CBRE Hotels Advisory and an expert on the Los Angeles hotel and hospitality market. He noted that the sale price, at roughly $643,000 per room, is a sign that the Ace Hotel has only grown in value from its previous acquisition.
“This would be a gain from when [Chesapeake Lodging Trust] bought it in 2015,” Baltin noted.
The building opened in 1927, home to United Artists film studios founded by Douglas Fairbanks, Mary Pickford and a grouping of other early Hollywood stars. The 12-story Spanish Gothic-style building, designed by C. Howard Crane, has since housed offices for Texaco, and was used by televangelist Gene Scott for services, which were broadcast.
Greenfield Partners acquired the site in 2011 and renovated it into a hotel, partnering with the Portland-based boutique Ace Hotel Group. Greenfield sold the site in 2015 to Chesapeake Lodging Trust for $103 million. Parks Hotel & Resorts Inc. acquired Chesapeake earlier this year, and was the seller in this deal.
Baltin noted that although hotel growth has currently plateaued in Los Angeles, the sales price is a sign that the market is still strong in Downtown.
Per the Ace Hotel, visitors at the Broadway hotel will not notice any changes stemming from the sale.