AEG Set to Announce New Hotel Next to L.A. Live
Eric Richardson
DOWNTOWN LOS ANGELES — Officials with AEG have been consistent in saying that their proposed $1.4 billion NFL stadium and events center would stimulate new developments in Downtown's hotel industry.
The company appears set to back that talk up by kicking off development of an entitled hotel site it owns just north of L.A. Live.
On Wednesday morning, Ted Tanner told the members of the Los Angeles Convention and Exhibition Authority that the company is under contract with a hotel developer and plans to announce the development deal within the next two weeks.
Tanner, who heads up real estate development for the company, said the 375-room development would include "two brands," but did not specify what they would be.
The project could be the first of several to get announced for South Park.
"Every major brand is interested in being Downtown right now," Tanner said.
While much of that interest is being driven by the stadium project and the promise of a renewed Convention Center, the first year performance of the 1,001 rooms in the JW Marriott and Ritz-Carlton hasn't exactly hurt. AEG projected first year occupancy rates in the two hotels to be 56%, but hit 64% instead. Room rates are similarly 10% higher than the company had projected.
The soon-to-be-announced hotel could get company on AEG's Olympic North parcel, which sits north of Olympic between Francisco and Georgia. The site is currently entitled for 600,000 square feet of office and broadcast studio space, but Tanner said that AEG may look to change some of that to hotel rooms. Since AEG first applied for the broadcast entitlement in 2009, Comcast purchased NBC Universal, giving the Comcast Entertainment Group a more natural home in the Universal City development.
Dion on March 11, 2011, at 06:05PM – #1
Perfect! Good job AEG!
LAofAnaheim on March 11, 2011, at 10:56PM – #2
Hard Rock Hotel? C'mon, let's make it happen!
Don Garza on March 11, 2011, at 11:22PM – #3
AEG keep em commin! Keep em comin! keep em comin!
Whitman Lam on March 14, 2011, at 12:14AM – #4
Good to hear that the new convention center hotel is doing brisk business. But does the higher occupancy rate come at the expense of smaller hotels getting lower occupancy rates.
If so, a second hotel can spell doom for the older hotels further away from LA Live.
Vero Queero on March 14, 2011, at 04:54PM – #5
@Whitman: sounds like a valid concern but the theory is that high-end JW Marriott & Ritz Carlton attract more shows & expositions to our Convention Center, so in turn, there will be more need for more rooms, including the existing smaller hotels further away. They're hoping for a "snowball" effect, which seems to be happening.
Brigham Yen on March 17, 2011, at 12:07AM – #6
I recall The Edition mentioned that LA was on the future expansion list. What about AKA Hotel out of New York? They're still looking for a location as well for Los Angeles.
carter on March 17, 2011, at 10:10AM – #7
Can't imagine the names of Hilton, Hyatt, W, among many others wouldn't like to be downtown. Yes, Hilton does have the Checkers, but that could be easily disposed of if they were to locate in South Park, with 2 different nameplates.
Tony Hoover on March 17, 2011, at 09:56PM – #8
hard rock moved their expansion plans from downtown to west hollywood and the sunset strip.
I would put money on another Marriott brand...Cosmopolitan, Renaissance, Marriott or Edition. I wouldn't rule out a Courtyard by Marriott, Residence Inn, or Fairfield Suites as more affordable options near the convention center.