Twenty Four Seven Hotels Takes Over High-Performing DoubleTree by Hilton Hotel LAX as Operations Asset Manager
Twenty Four Seven Hotels Enters Los Angeles Market with Operations and Asset Management Services for High-Performing DoubleTree by Hilton Hotel LAX- El Segundo
Twenty Four Seven Hotels (www.247hotels.com), West Coast leaders in hotel management, investment and development, has announced the addition of DoubleTree by Hilton LAX – El Segundo to its management portfolio. The LAX hotel is the first of four new management contracts in the LA area in 2017.
Twenty Four Seven Hotels played a pivotal role in the highly complex transaction providing guidance to the buyer on the transactional side with sourcing, underwriting and acquiring the hotel, and on the capitalization side by assisting in the structuring of new mezzanine financing in conjunction with assumption of a senior CMBS loan. The real estate transaction and loan were both successfully brokered by Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the new owner Umbrella Hotel Group, an emerging owner and developer of hotels in the Western U.S.
DoubleTree by Hilton Hotel LAX is a 216-room property and the only full-service hotel within El Segundo, just minutes from Los Angeles International Airport (LAX). Recognized as the aerospace capital of the world, the community of El Segundo is home to many of the world’s most influential Fortune 500 companies. Twenty Four Seven Hotels is based in Newport Beach and has also assumed management of the hotel.
Twenty Four Seven Hotels consistently plays a critical advisory role in financial transactions and asset management strategies in addition to its management services, leveraging the company’s extensive network of brokers and investment institutions that align with their vision. This unique contract marks their first DoubleTree hotel operation, and fuels the brand’s current momentum as they continue to build their portfolio, which includes 19 managed hotels through the Western U.S. with six more currently under construction, including a second DoubleTree set to open in Los Angeles County in the 4th quarter.
“Joining forces with both Umbrella Hotel Group and the HFF capital markets team generated the synergy required to pull off such a complex transaction. We would not have been able to navigate the various milestones without a tremendous amount of deal savvy from all stakeholders involved,” said Drew Hardy, President of Twenty Four Seven Hotels.
“With their expertise and strong relationships, we were fortunate to align with Twenty Four Seven Hotels on this significant investment opportunity, and we know their management platform will take the property to the next level in meeting our investment objectives,” said Charu Goyal, founder and president of Umbrella Hotel Group, a family-owned, California-based hospitality company with a diverse inventory of retail and hotel properties.
Catering to both business and leisure travelers, the seven-story DoubleTree by Hilton LAX is ideally situated in El Segundo, a hotbed for industry and innovation with the famed Silicon Beach next door. The hotel underwent renovations in 2016 that consisted of a complete reconfiguration and enhancement of first-floor public areas and guestroom upgrades. The design refresh of the remaining six floors of guestrooms and a brand-new pool deck will complete the transformation in early 2018, along with tech upgrades including Whistle, a guest-oriented text messaging system. The hotel features a junior Olympic-sized, heated, outdoor pool; 3,238 square feet of indoor meeting space and 625 square feet of poolside outdoor space; new fitness center; 24-hour business center; snack shop; airport shuttle; printing service and East Grand Bar & Grille restaurant. Situated on 2.33 acres at 1985 East Grand Avenue, the hotel, which is in the South Bay office submarket, is surrounded by more than 33 million square feet of office space.