Chinese Buyer Grabs Holiday Inn Near LAX
- Jul 22, 2016
Los Angeles—The Holiday Inn at the Los Angeles International Airport was recently sold in a transaction handled by Infinity Realty Advisors. China-based US OCG, a subsidiary of the Esong Group, paid $52.5 million for the hospitality asset that was constructed back in 1973. This is the company’s first hotel purchase in the U.S. market.
Last renovated in 2008, the 12-story, full service hotel is reportedly operating at occupancy rates around the 90 percent mark. Located at the corner of La Cienega Boulevard and Century Boulevard, the 405-key hotel serves one of the busiest airports in the world. LAX is seventh in the world in terms of passenger traffic, as roughly 75 million people transited the airport in 2015.
The airport is in the midst of an $8 billion Master Plan that includes the Consolidated Rent-A-Car Center, an automated people mover and a new Metro Station. According to Infinity Realty Advisors representative Karin Chao, “The Holiday Inn LAX is a high-performing hotel, and will continue to benefit from the LAX multi-billion development program.” An advisor to the buyer also noted that the hotel is an underutilized asset which provides opportunity in a dense market.
Image courtesy of IHG