AEG, developers of L.A. LIVE and Williams/Dame & Associates, the firm behind the city’s innovative “South Park” residential towers and downtown hotel projects, disclosed that they have signed an agreement for AEG to sell Williams/Dame & Associates a 60,000 sf. parcel at the northeast corner of Olympic Boulevard and Georgia Street. Envisioned as a 450-room property to be operated as a Renaissance Hotel, the new hotel will be the fourth Marriott International flag located at the gateway of L.A. LIVE. The approximately $200M project is anticipated to begin construction in first quarter of 2014 and completed by early 2016.“This project furthers our commitment to the City of Los Angeles to deliver much needed high quality hotel rooms in downtown to support the anticipated modernization and expansion of our Los Angeles Convention Center,” said Timothy J. Leiweke, President and CEO, AEG. “Beginning with STAPLES Center and then, L.A. LIVE and our hotels, each development has resulted in substantial increases in new events for our City, an escalation in overnight stays at all of the downtown properties and an even greater demand for new quality hotels to meet these needs. Thanks to Homer’s continued faith in our City and proven investment strategy, there is no doubt that today’s announcement will be any different.”
Hotel and tourism expert Bruce Baltin, Senior Vice President at PKF Consulting has consistently projected that downtown Los Angeles requires 2,000 to 3,000 new hotel rooms excluding the rooms that will be replaced through the redevelopment of the former Wilshire Grand site. Baltin remarked that these additional hotel rooms are essential for Los Angeles to remain competitive in attracting large conventions and retaining existing business while enabling Los Angeles to join the nation’s top tier of Convention Centers in conjunction with the recently approved Los Angeles Convention Center Modernization and Farmers Field project.
This new Renaissance Hotel will join a family of Marriott hotel products at L.A. LIVE including the AEG-owned luxury 5 star Ritz-Carlton, Los Angeles Hotel (123 rooms), the 4 star JW Marriott Los Angeles L.A. LIVE Hotel (878 rooms) and two new hotels currently under construction also developed by Williams/Dame & Associates and American Life, Inc. that include an extended stay Residence Inn By Marriott (218 rooms) and a select service Courtyard by Marriott (175 rooms) located together within a single 24-story tower. This project, projected to open in July, 2014 will be immediately adjacent to the new Renaissance Hotel and directly across the street from The Ritz-Carlton, Los Angeles and JW Marriott Los Angeles L.A. LIVE Hotels.
“With over 1,844 rooms in such close proximity, Marriott will be able to continue its success in attracting large meetings and conventions and induce further demand for other downtown hotel properties,” commented Baltin. “Since the opening of the JW Marriott Los Angeles L.A. LIVE and The Ritz-Carlton, Los Angeles Hotels in early 2010, other downtown hotels have realized a significant increases in ADR (average daily rates) and occupancy levels.”
“We are thrilled to have the opportunity to move on to the adjacent site and continue our hotel development program”, said Homer Williams of Williams/Dame and Associates. “The timing is ideal as we intend to complete and open the new Courtyard by Marriott and Residence Inn by Marriott Hotels in July of 2014, just a few months after we expect to break ground on this new Hotel.”