California Apparel News

The Ace Hotel Downtown Los Angeles has officially been sold to an undisclosed buyer, according to an announcement made by Tysons, Va.–headquartered lodging real-estate investment trust Park Hotels & Resorts Inc.

In 2015, the Annapolis, Md.–based Chesapeake Lodging Trust acquired the 14-story Spanish Gothic property for $103 million, or approximately $566,000 per key, entering into a new management agreement with the Ace Hotel Group. In May 2019, Chesapeake Lodging Trust announced that it would be acquired by Park Hotels & Resorts Inc. This deal closed on Sept. 18.

Park Hotels & Resorts’ agreement to sell the Ace Hotel Downtown Los Angeles was executed in November, but the official announcement was made on Dec. 20.

“We are very pleased to announce the successful execution of our 20th non-core asset sale, which helps deliver on our stated objective of reducing leverage following our recent acquisition of Chesapeake Lodging Trust,” Thomas J. Baltimore, Jr., chairman and chief executive officer of Park Hotels & Resorts Inc., said in a statement. The property was sold for $117 million, or $643,000 per key.

“We have now sold approximately $1 billion in assets since our formation less than three years ago, taking advantage of strong buyer interest and our deep relationships with the investment community in order to achieve our strategic goals,” Baltimore said in a press release. “We remain confident in our ability to deliver on our near-term objectives of upgrading the quality of the portfolio while also maintaining a low-levered balance sheet, which will serve us well in all phases of the lodging cycle.”

After debuting in January 2014 at 929 S. Broadway, the Ace became a Los Angeles Fashion District favorite. The 182-room hotel remains a popular location for hosting apparel-industry meetings and events, such as Vegan Fashion Week, which kicked off its October edition at the 1,600-seat Theatre at Ace Hotel.