Hollywood Hotels Secure $208M Recapitalization, Target Completion By Summer
Three under-construction projects in Hollywood — two hotels and an event and eatery space — are slated to be complete this summer thanks to a $208M loan facility, New York-based Machine Investment Group announced.
The $208M recapitalization will provide financing to finish work on a three-property hospitality portfolio located in Hollywood and developed by Relevant Group that includes the Tommie and Thompson hotels. Both hotels are already well under construction. The Citizen News building, which is being remade as an event space with food and beverage offerings, is also expected to be open by the summer as a result of the financing.
“We’re pleased to deliver a financing solution to see these properties through to completion,” Machine Investment Group Managing Partner Eric Rosenthal said in a statement.
“This facility provides us the necessary funds and flexibility to complete three outstanding projects in Thompson and Tommie Hollywood and Citizen News,” Relevant Group Managing Partner Grant King told Bisnow in an email. “We remain incredibly bullish on the future growth of Hollywood and expect these projects to further position this submarket as a premier hospitality and entertainment destination in Los Angeles.”
The financing comes as some industry experts have reported seeing a rebound of leisure travel positively affecting the more boutique and destination hotels, and that has resulted in optimism for the sector in the LA area.
The 190-key Thompson Hollywood hotel, the 212-key Tommie Hollywood hotel, and the Hollywood Citizen News building are adjacent to the intersection of Selma and Wilcox avenues, making them neighbors of the 178-room Dream hotel, which opened in 2017 and was also developed by Relevant Group.
This corner of Hollywood has a lot of new projects in the pipeline, including GPI Cos.'s planned 26-story residential high-rise that would replace the now-vacant former Amoeba Music store on Sunset and Cahuenga and a Millennium Partners and Shorenstein Properties joint venture that would redevelop a Staples office supply store at Sunset and Wilcox into a 15-story office complex with ground-floor retail.