The Ace Hotel in downtown Los Angeles just sold for a big price tag — $103 million.
Back in 2011 when Greenfield Partners bought the Ace Hotel, they paid just $11 million for it. They spent two years renovating the 1920s building – and gave it a trendy restaurant, rooftop bar and restored theater.
The hotel's new owner is Maryland-based Chesapeake Lodging Trust. It said Ace Hotel Group will maintain the current brand.
“The theater booking pace is up considerably from its first year and will host over 100 events in 2015,” said Chesapeake Lodging Trust’s president and CEO, James L. Francis, in a press release Friday. “We estimate that the theater alone will generate revenues in excess of $4.4 million and net operating profit of over $2 million.”
Broker Brad McCarthy, who works with LA-based CBRE, watches the downtown business scene, and says this is a good indicator of where the market is going.
"The guys that bought that and changed it into what it is today did a tremendous job – they were on the forefront and kind of the leading edge of the gentrification of that stretch of Broadway," he said.