BEVERLY HILLS, Calif. — The Mr. C Beverly Hills Hotel will soon have a new owner.
Braemar Hotels & Resorts, a Dallas-based real estate investment trust that owns several high-end hotels across the nation, has agreed to acquire the 138-room hotel with an adjacent five condominiums in the Pico-Robertson area of West Los Angeles for $77 million.
"This property fits perfectly with our strategy of owning high [revenue per available room] luxury hotels and resorts and further diversifies our portfolio," said Richard J. Stockton, Braemar's president, and CEO in a news release. "We are excited to announce our first acquisition in the midst of the current industry recovery cycle."
The acquisition comes as the hotel industry attempts to rebound from the shutdowns and economic downturn caused by the coronavirus pandemic. Throughout the year, the hotel industry saw record-low occupancy rates and average daily rates drop.
According to Smith Travel Research, at the end of April, hotel occupancy in the Beverly Hills/ West Los Angeles submarket is hovering around 43%, a 21% drop year-over-year. Hotel rates in the area are down nearly 29% to $252.
Built-in 1965, The Mr. C hotel at 1224 S. Beverwil Drive was formerly The Tower Beverly Hills hotel and Loews Beverly Hills Hotel.
Real estate developers Bob and Alex Ghassemieh acquired majority ownership of the hotel in 2006. They redeveloped the hotel with brothers Ignazio and Maggio Cipriani of the Cipriani family, renowned for owning restaurants, event spaces, and hotels around the world.
The hotel was rebranded as the Cipriani's first Mr. C hotel in 2011. The Mr. C hotel chain has two other locations in New York and Coconut Grove, Fla.
The contemporary-styled hotel features various amenities, including a 4,500 square foot pool area, fitness center, restaurant, and indoor and outdoor event spaces.
The acquisition also includes five newly constructed and fully furnished condominium residences ranging from 2,000 to 3,400 square feet. The residences are currently extended-stay rentals, Braemar officials said.
A Mr. C hotel spokeswoman did not return a Spectrum News email for comment.
Braemar is banking on the hotel's performance before the pandemic.
Before the pandemic, the hotel averaged 75% occupancy, a daily rate of $334, and revenue per available room of $251.
The deal is expected to close in July. Remington Hotels, a management firm, will take over hotel management once the acquisition is complete.