W Hollywood Goes for Nearly $200M in Sale to Trinity/Oaktree

A joint venture among funds managed by Trinity Fund Advisors LLC, an affiliate of Trinity Real Estate Investments LLC, and funds managed by Oaktree Capital Management LP, recently acquired W Hollywood, a 305-key luxury hotel. The purchase price is nearly $200 million, a loss of some $20 million from Host Hotels & Resorts’ previous $219 million bill of sale four years ago.

Following the transaction, Trinity and Oaktree will undertake a multi-million-dollar capital improvement plan that will elevate the hotel as well as enhance Marriott International’s design and positioning of the W Hotels global brand.

“In acquiring W Hollywood, we are expanding our longstanding partnerships with Oaktree and Marriott International in repositioning a marquee asset in one of the nation’s most storied locations,” said Sean Hehir, managing partner, president and CEO of Trinity. “Moreover, this acquisition perfectly aligns with our investment strategy, as we’re able to leverage our significant operational expertise to enhance the property’s appeal and value, like what we achieved with Oaktree and Marriott International at The Westin Maui Resort & Spa, Ka’anapali. We feel that this acquisition reflects our ability to identify compelling hospitality investment opportunities that are poised to deliver attractive risk-adjusted returns.”

Opened in 2010 as the first purpose-built luxury lifestyle hotel in greater Los Angeles, the W Hollywood features 265 guest rooms and 40 suites, and is located at the iconic intersection of Hollywood and Vine.