Dual-branded Hyatt Place and Hyatt House Hotels to bring upscale lodging to Los Angeles International Airport

401-room combined Hyatt Place and Hyatt House hotels expected to open in 2020

LOS ANGELES (May 8, 2018) – CaRE Development / 5959 LLC today announce that it has entered into a franchise agreement with a Hyatt affiliate for a dual-branded Hyatt Place and Hyatt House hotel in Los Angeles, directly adjacent to Los Angeles International Airport (LAX). The development of Hyatt Place LAX and Hyatt House LAX, the first dual-branded Hyatt Place and Hyatt House hotels in LA, are expected to open in 2020 and further reinforce the growing demand for upscale lodging in the expanding LAX market.

The Hyatt Place and Hyatt House brands are rooted in extensive consumer research indicating that guests seek stylish, comfortable, seamless experiences that accommodate their lifestyles and familiar routines. To embody this, the two brands offer casual hospitality and purposeful service in a smartly designed, high-tech and contemporary environment.

“We are excited to introduce the first combined Hyatt Place and Hyatt House hotels to the LA area,” said Chief Executive Officer Steve Shpilsky, CaRE Development. “Guests will be able to appreciate the contemporary design and spacious layout of the guestrooms – from the separate spaces to sleep and work, including the Cozy Corner at Hyatt Place hotels, to the apartment-style suites with real kitchens at Hyatt House hotels – our guests will be able to choose the space that fits their needs.”

Hyatt Place LAX and House Hotel LAX will embrace LA’s historical mid-century architecture and design with a contemporary twist. The 272-room Hyatt Place LAX will bring the brand’s intuitive design, casual atmosphere, spacious guestrooms with distinct sleeping and living areas, and practical amenities, such as free Wi-Fi and 24-hour food offerings, to guests looking for a relaxing and uncomplicated place to pause before beginning the next leg of their journey. The 129-room Hyatt House LAX will offer apartment-style suites with fully equipped kitchens, providing guests with the spaces and places that make them feel more at home. Together, the two hotels will offer an array of shared services and amenities that meet the needs of transient and extended-stay guests, which will be highlighted by a rooftop pool, restaurant and bar with unprecedented views of LAX runways, downtown Los Angeles, the Hollywood Sign, Beverly Hills, Santa Monica, and Manhattan Beach.

Located steps away from LAX at 5959 West Century Blvd. and less than two miles away from the new City of Champions Stadium, Hyatt Place LAX and Hyatt House LAX will serve the annual 85 million business and leisure travelers that pass through the second busiest airport in the United States. LAX is undergoing a $14 billion renovation, which will include a new automated people mover to the airport, which will be steps from Hyatt Place LAX and Hyatt House LAX.

“Hyatt Place LAX and Hyatt House LAX are great examples of our continued focus on growing premium hotels that will attract business and leisure travelers alike,” said Julienne Smith, senior vice president of development and owner relations, Hyatt Place and Hyatt House. “We’re thrilled to team up with Steve and the entire CaRE Development team on this dual-branded hotel – together, our collaboration speaks volumes about the strength of LA’s economy and the appeal and convenience of two hotels that will meet the needs of guests visiting LA or passing through LAX.”

“LAX and LA continue to exhibit strong hospitality demand fundamentals. Between the $14 billion LAX renovation, new public transportation, Silicon Beach, large research universities, the 2028 Summer Olympic Games, a new NFL stadium that will be home to the LA Rams and LA Chargers, and some of the best weather in the world, we can’t wait to open our doors for all to enjoy,” continued Shpilsky.

For more information, please visit hyatt.com/whysettle.

http://newsroom.hyatt.com/050818-Dual-Branded-Hyatt-Place-and-Hyatt-House-Hotels-to-Bring-Upscale-Lodging-to-Los-Angeles-International-Airport

The term “Hyatt” is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates.

George Smith Partners secures $50 million in construction financing for Hyatt Hotel redevelopment near Los Angeles International Airport (LAX)

 

LOS ANGELES, Calif. (November 15, 2017) – Commercial real estate investment banking firm George Smith Partners arranged $50 million in construction financing for the redevelopment of a 258,000 square-foot, 13-story office tower. The property will be converted into a 129-key Hyatt House and a 272-key Hyatt Place Hotel adjacent to LAX. The senior construction financing, on behalf of 5959 LLC, an affiliate of California Real Estate Regional Center, LLC (“CaRE”), was arranged by George Smith Partners’ Vice President Zachary Streit.

“There is growing demand in the LAX submarket, and the current hotel stock is largely outdated,” explained Streit. “As a result, this new dual-branded offering, which will feature a trendy, mid-century urban design, will be of immediate interest to business and leisure travelers.”

The property is located on West Century Boulevard, one block away from LAX – the seventh busiest airport in the world.

Streit notes that the timing is right for this redevelopment, citing a 2016 report from STR Global showing a 91.5% hotel occupancy rate and a 12.7% year-over-year increase in average daily rate.

“Even with demand high and supply low, identifying the right lender was challenging based on several factors,” says Streit. “It was crucial to find a lender who was comfortable with hotel construction financing at this point in the cycle, as well as amezzanine tranche of EB-5 financing, and an unsubordinated ground lease. Additionally, it was critical that the transaction was structured to comply with High Volatility Commercial Real Estate (HVCRE) banking regulations.”

According to Streit, George Smith Partners was able to source a lender with both extensive experience in ground-up hospitality transactions, and a deep understanding of the supply-constrained LAX submarket.

“George Smith Partners was able to close the financing by demonstrating the sponsor’s attractive basis in the property, the submarket’s strong fundamentals, and the
project’s incredible location,” Streit adds. “Our team also assisted in structuring the transaction to ensure HVCRE compliance.”

Sized to 50 percent of total project cost, the non-recourse, interest-only loan will float at a spread of 425 basis points over one-month LIBOR and carries two one-year extension options.

Planned for completion in 2019, the redeveloped Hyatt House and Hyatt Place Hotel will feature a mid-century inspired urban design, rooms with 11.5-foot ceiling heights, and a host of amenities including a rooftop bar, pool, and restaurant with unobstructed views spanning from Downtown Los Angeles to the Pacific Ocean, a variety of dining options and a state-of-the-art 24/7 fitness center.

“The dual-branded Hyatt Hotel is located in one of the strongest hotel markets in Los Angeles thanks to its proximity to LAX and central location to all major LA attractions. The city’s $14 billion LAX modernization, along with new public transportation, the under-construction $2.7 billion NFL Stadium, 2028 Olympics, proximity to Silicon Beach, and emergence as one of the great global cities will continue to stimulate market demand for years to come,” according to Steve Shpilsky, Principal of 5959 LLC and Co-Founder of CaRE. “The project successfully combines EB-5 mezzanine financing with developer equity and senior financing to complete the hotel, creating over 1,000 new jobs in Southern California.”

The property is located at 5959 West Century Boulevard in Los Angeles, California.

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About California Real Estate Regional Center LLC (CaRE) & 5959 LLC

Founded in 2011, CaRE has financed and developed approximately $750 million of hotel developments in US gateway cities, including EB-5 financing of the Waldorf Astoria Beverly Hills Hotel. CaRE finances and develops commercial real estate opportunities combining traditional equity and debt with EB-5 financing. To date, CaRE has closed over $230 million in EB-5 capital from over 450 investors. Additional information about CaRE is available at www.EB5socal.com.

The principals of 5959 LLC have financed and developed hotel projects totaling over $2 billion across the country and have a combined 50 years of experience in finance, accounting, and real estate.

 

About George Smith Partners

Founded in 1992, George Smith Partners is a leading national real estate investment banking firm that specializes in arranging financing for commercial and multifamily properties, including acquisition, construction, bridge and permanent loans, as well as mezzanine loans, highly leveraged participating loans and joint venture equity. The company has arranged more than $44 billion in financing since its inception. Additional information about George Smith Partners is available at www.GSPartners.com.