News for the Hospitality Executive
Michael Rosenfeld’s Next Century Associates Acquires the
Hyatt Regency Century Plaza Hotel for $366.5 million, Approximately
$505,000 per room, from Sunstone Hotel Investors, Inc.
ANGELES - June 2, 2008 - Los Angeles real estate investor Michael Rosenfeld’s
Next Century Associates, a joint venture with an entity in the D. E. Shaw
group, a global investment firm, has purchased the renowned Century Plaza
Hotel for $366.5 million, approximately $505,000 per room, from Sunstone
Hotel Investors, Inc. (NYSE:SHO). The 19-story hotel, a centerpiece of
Century City in Los Angeles with a highly recognizable sweeping arc shape,
has 726 guestrooms and 85,000 square feet of meeting space, including the
Los Angeles Ballroom, largest in the Southland.
“This is a rare opportunity to buy a jewel in my hometown,” said Michael Rosenfeld, founder and CEO of Century City-based Woodridge Capital Partners and managing partner of Next Century Associates. “The Century Plaza has been an LA icon since it opened in 1966. Further, its location in the heart of Century City is unbeatable,” he added, pointing to its position within walking distance of new luxury residential towers, the Westfield shopping center, and 10 million square feet of the finest office complexes in Los Angeles including the recently completed 2000 Avenue of the Stars directly across the street.
“Properties like the Century Plaza Hotel are one-of-a-kind; they have lasting value in any economic environment,” Rosenfeld noted. “Prime Westside assets are maintaining their value and attractiveness to buyers, particularly international ones. It is not every day such a prime property becomes available.”
Sunstone purchased the hotel in 2005 and immediately implemented a $36 million improvement program, installed Global Hyatt as the operator and added the highly popular X-Bar with its indoor/outdoor lounge and a 35,000 square foot Equinox health club as well as major improvements to all public areas. The X-Bar was named one of the top ten destinations for young professionals by the Hollywood Reporter.
“Sunstone has done a great job in repositioning the hotel to a first-class property and we intend to continue this momentum,” according to Rosenfeld. “We want to expand its appeal to the growing entertainment industry now based in Century City including Creative Artists Agency (CAA) as well as to business travelers, affluent shoppers and international visitors.”
Hyatt will continue to operate the hotel that sits on 5.75 acres at
2025 Avenue of the Stars. The property has extensive gardens as well as
four outdoor swimming pools with private cabanas, a 20-room spa and several
Century City was created in the early 1960s as a master-planned community on 176 acres that were originally part of the backlot of the 20th Century Fox Studios. It was designed as a self-contained, mixed-use mini-city and today it is on the verge of achieving this original vision as a world-class residential and mixed-use destination, Rosenfeld said.
Woodridge Capital Partners, founded by Rosenfeld in 1988, is a broad-based real estate investment company with hotel, residential, commercial and industrial assets throughout the United States and Canada. Rosenfeld recently sold the 24-story Carlyle on Wilshire, a luxury residential tower on Wilshire Boulevard’s Golden Mile, to New York based Elad Group for $140 million.
The D. E. Shaw group is a global investment and technology development firm with more than 1,300 employees; approximately $36 billion in aggregate investment capital as of April 1, 2008; and offices in North America, Europe, and Asia. Since its organization in 1988, the firm has earned an international reputation for financial innovation, technological leadership and an extraordinarily distinguished staff.
Next Century Associates
|Also See:||Sunstone Hotel Investors, Inc. Acquiring the 728-room Century Plaza Hotel & Spa in Century City, California for $293.0 million; Will Reposition as Hyatt Regency Century Plaza / August 2005|
|David Horowitz Named General Manager for the New Hyatt Regency Century Plaza / March 2006|
|Pivotal Century Plaza Hotel, LLC, Which Acquired The Century Plaza and Tower in February 1999, Will Renovate the Property into Two Hotels: The St. Regis, LosAngeles, and The Westin Century Plaza / April 2000|
|The 1,046 Room Century Plaza Hotel and Tower Sold to the Pivotal Group: Plan Dual-Brand Strategy / Feb 1999|