Starwood Hotels and Resorts Worldwide sold two W Hotels this week with the W Chicago Lakeshore and W Los Angeles Westwood purchased by real estate investment trusts.
Don’t panic! The two hotels will remain managed by Starwood and continue to be branded as W Hotels.
The sale of the 520-room W Chicago Lakeshore to Chesapeake Lodging Trust for $126 million was announced earlier this week. In hotel industry terms the selling price of a hotel is referenced as cost per hotel room key – $242,000 per key for the W Chicago Lakeshore. That is quite a bit of cash for the notoriously small footage of a typical W hotel room.
My 2010 W Lakeshore Chicago lake view room.
W Chicago Lakeshore view of Navy Pier, one of Chicago’s top tourist attractions.
Chesapeake says a $35 to $38 million renovation of the Chicago Lakeshore hotel will begin in late 2013. The W Chicago Lakeshore is a 32 story building with 42 suites. The top floor has the rooftop Whiskey Sky bar.
Here is the link to my review of the W Chicago Lakeshore from October 2010.
Chesapeake Lodging also owns the other W City Center Hotel in Chicago it purchased in May 2011.
W City Center is in the Chicago Loop, in the financial district, directly across the street from the JW Marriott Chicago.
W Los Angeles Westwood sold to PebbleBrook Trust for $125 million
Also this week Starwood completed the sale of the W Los Angeles Westwood. The new owners entered a 40 year management agreement with Starwood Hotels to maintain the W brand flag.
The average daily rate of W Los Angeles Westwood was $258 in 2011 with 84% occupancy in the 258 room hotel. Pebblebrook also owns the Sheraton Delfina Santa Monica and the Mondrian West Hollywood.
Pebblebrook stated it will renovate the restaurants, pool area and meeting space of the W Los Angeles Westwood.
I haven’t been to the W Los Angeles Westwood yet, so no photos or thoughts to share on the hotel.
In April I visited the Mondrian on the Sunset Strip, another hotel owned by Pebblebrook and near Hyatt’s Andaz West Hollywood hotel. Both hotels looked like great party pads near the House of Blues and the Comedy Store. The Andaz representative told me their hotel tries to keep the party atmosphere low key while the Mondrian staff said their hotel is party central for late night rockers on the Sunset Strip.
The Mondrian West Hollywood on Sunset Strip. House of Blues is building on far left. The Comedy Store on far right. And party central at the Mondrian. This photo was taken outside the Hyatt Andaz West Hollywood.