Sunset Strip Hotel Hits The Market

The Standard Hotel On Sunset Boulevard

As its property hits the market, it may be the end of an era for The Standard Hotel in West Hollywood.

A spokesperson for Standard International, the parent company of the hotel operator, told The Real Deal that the property was put up for sale by its owner, which isn't the operator. Though the company spokesperson said the operator wants to revive the hotel in concert with whoever decides to buy the building, the new owner would be calling the shots.

The land is owned by Rittersbacher Sunset LLC, but the Spanish-based investment firm Ferrado Group, which has a location in Newport Beach, held the lease on the property and is the one that the hotel paid rent to, The Real Deal reported.

The hotel at 8300 Sunset Blvd. has been closed since January. The closure marked the end of more than a two-decade run on the Sunset Strip for the hotel, once a hot spot for celebrities, the Los Angeles Times reported. The Times noted that in 2019, Ferrado had raised the hotel’s rent significantly.

“Despite 22 years of unconditional love for our hotel, our guests, our team and our community, the hotel was unable to prevent a significant increase to its lease, which makes operating the property impossible,” a January 2021 post on the Standard’s Instagram page announcing the closure read.

The operator had been trying to renegotiate the cost, a Standard International spokesperson told the Times in January. Ferrado sued Rittersbacher Sunset in July 2020, alleging that the rent hike was due to an incorrect appraisal method, according to TRD. The matter was settled over the summer. While the terms of the settlement weren't disclosed, a Standard International spokesperson told TRD that Ferrado was no longer part of the equation at the property.

The attorney listed as the agent for service for Rittersbacher Sunset LLC and a representative for Standard International didn't immediately respond to a request for comment Monday. A representative for Ferrado Group in the U.S. couldn't be reached ahead of publication.

Hotels sales in the first half of 2021 surpassed not only 2020 numbers but also 2019 numbers, according to the Los Angeles Business Journal, citing data from Atlas Hospitality. In the first half of 2019, 22 hotels in LA traded hands for $179.8M, which translates to a median room price of $107,863. In 2021, LA County saw 46 hotels trade hands for $846.2M, or a median price of $153,576 per room.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Los Angeles Newsletters
Related Stories

Stephen Ross, Jeffrey Soffer Scrap Plans For Miami Airport Hotel Project

Braemar Inches Closer To Ashford Breakup With $372M Hotel Sale

Workers At 6 Chicago Hotels Go On Strike Ahead Of Chicago Marathon

NYC Is Building Hotels Again. It May Not Be Enough

Downtown Los Angeles Retail, Office Hub The Bloc Up For Sale

DHS Buys 3 More Detention Facilities From The Geo Group For $950M

Amazon, LA Olympics Organizer Take Over 39-Acre Site Formerly Home To Forever 21

High Costs Pose Barriers For Ground-Up Hotel Development In Charlotte

Walt Disney Pays $115M For Former Yamaha Campus: The Los Angeles Deal Sheet

Hudson Pacific Sells San Francisco Office Buildings

Newsom Signs Bills Aimed At Cold Storage Post-Boyle Heights Fire

Hotel Industry Sees Record-High Increases In RevPAR, ADR