A new owner has checked in at a once-popular hotel along the iconic Sunset Strip in greater Los Angeles.
Entities related to hospitality moguls Ed Scheetz and Ian Schrager bought the roughly 139-room 8300 W. Sunset Blvd. in West Hollywood, California, for $112.5 million, or about $809,300 per room, according to public records and CoStar research.
The property previously operated as The Standard hotel and hosted Hollywood celebrities before shuttering during the pandemic due to rising rent costs. The seller was Springfield, Oregon-based Rittersbacher Sunset LLC.
The price is the highest total price paid for a commercial property in greater L.A. this year. The West Hollywood deal eclipsed Landmark Properties' $94 million deal to buy multiple properties for a future multifamily development at Figueroa Street and Flower Drive near the University of Southern California.
The future hospitality concept in the 8300 W. Sunset Blvd. property is not known to CoStar News, and representatives for Scheetz and Schrager did not respond to a request to comment from CoStar News.
The West Hollywood property was built in 1962 and sits near many high-end hotels along the Sunset Strip including Chateau Marmont and Sunset Tower, according to CoStar data. The Sunset Strip is a 1.7-mile stretch along Sunset Boulevard that has long been a popular hangout for Hollywood stars and the well-heeled due to its hotels, clubs, restaurants and shops.
The West Hollywood sale comes after a new hotel, called The Delphi, revealed Wednesday it was opening in a shuttered Standard hotel in downtown Los Angeles at 550 S. Flower St. That Standard hotel officially closed its doors in January 2022 citing restrictions "imposed by the California state and city authorities and the safety of our guests and staff."
The Hollywood-Beverly Hills hotel market has a 68.7% 12-month occupancy, up from the 56.7% figure one year ago, according to CoStar data. In addition, the hotel market's 12-month revenue per available room, or RevPAR, an industry standard metric of hotel performance, was $359.90, up from $288.83 one year ago.
The Real Deal reported earlier this month The Standard had sold to Scheetz and Schrager for an undisclosed price.