The Ace Hotel Downtown Los Angeles, including the Theater at Ace Hotel, has sold for $117 million to an unnamed buyer.
Parks Hotels & Resorts Inc., which had only recently taken ownership of the property, executed the agreement to sell. The price amounts to $643,000 per room for the 182-room hotel.
“The more assets you buy, the lower the price per room you can get, and they are now looking at some of those assets and which deals they can turn for a very quick profit, and Ace fits into that category,” said Atlas Hospitality Group President Alan Reay.
In September, Parks Hotels closed its acquisition of Chesapeake Lodging Trust for $2.5 billion, which gave the company ownership of the Ace and 17 other hotels, including the Hilton Checkers Los Angeles in downtown, the Hotel Indigo San Diego Gaslamp Quarter, and a handful of properties in San Francisco.
Chesapeake Lodging Trust purchased the property from Greenfield Partners for $103 million in 2015 after it had become a hotel. In addition to the rooms and theater, the Ace Hotel also has a pool, restaurant and bars.
The Ace Hotel opened in 2014 at 937 S. Broadway.
It has been a busy time for hotel sales in L.A. In the first half of the year, transactions rose 57% over the previous year. Dollar volume, though, was down 32%, according to Atlas Hospitality Group data.
Reay said the second half of the year was strong and “2019 is turning out to be a banner year in terms of the number of transactions and the number of higher-end trophy assets.”