AEG Set to Announce New Hotel Next to L.A. Live
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.