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Jones Lang LaSalle closes the $74 million sale of the Torrance Marriott South Bay hotel
LOS ANGELES, Nov. 25, 2013 — Jones Lang LaSalle’s Hotels & Hospitality Group today announced the entry of Sichuan Xinglida Group Enterprises Co. Ltd., through its U.S. subsidiary XLD Group, LLC into the Los Angeles market with the Chinese-based investor’s purchase of the Torrance Marriott South Bay hotel. DiamondRock Hospitality Company sold the 487-room, 17-story hotel, located in the city’s prime South Bay submarket, for $74 million. This is JLL’s fifth hotel sold to a Chinese investor in 2013 and second this month.
Managing Directors John Strauss and Bob Webster along with Senior Vice Presidents Tim Southard and Tony Muscio, led the Jones Lang LaSalle team on this transaction.
“The Torrance Marriott South Bay hotel attracted robust domestic and international investor interest, given the Los Angeles hotel market’s long-term track record of superior performance and limited new supply pipeline,” said Strauss. “The South Bay submarket continues to outperform the broader market as evidenced by year-to-date RevPAR growth of 9.3 percent compared to the national average of 5.6 percent demonstrating the tremendous opportunity for XLD Group, LLC to purchase a high-performing asset with a unique combination of current yield and significant upside potential.”
Mr. Jun Zhang, Chairman of the Board of Directors of XLD Group, LLC and Sichuan Xinglida Group Enterprises Co. Ltd., noted that this property was a good candidate for an international purchaser, in particular for Chinese investment, and felt that the success of this transaction will encourage more Chinese investors to invest in the U.S market.
According to the U.S. Department of Commerce, the number of Chinese visitors to the U.S. has grown at a compounded annual growth rate of 29 percent since 2004, and the total is expected to more than double during the next five years. Los Angeles County recorded a record year in 2012, hosting 41.4 million visitors. The city ranked the second most visited region in the country for international travelers and reached 6 million in 2012.
The Torrance Marriott South Bay was built in 1985, and underwent a comprehensive renovation in 2007. The hotel sits on 8.4 acres and includes 31,500 square feet of meeting space, the Rain Wine Bar & Lounge, a Starbucks and Garden Court Restaurant. The property is adjacent to the fifth largest mall in the United States, Del Amo Fashion Center which is currently undergoing a renovation and expansion including a brand new 138,000 square foot Nordstrom scheduled to open in 2015 directly across the street from the property.
Jones Lang LaSalle’s Hotels & Hospitality Group serves as the hospitality industry’s global leader in real estate services for luxury, upscale, select service and budget hotels; timeshare and fractional ownership properties; convention centers; mixed-use developments and other hospitality properties. The firm’s more than 265 dedicated hotel and hospitality experts partner with investors and owner/operators around the globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an asset. In the last five years, the team completed more transactions than any other hotels and hospitality real estate advisor in the world totaling nearly US$25 billion, while also completing approximately 4,000 advisory, valuation and asset management assignments. The group’s hotels and hospitality specialists provide independent and expert advice to clients, backed by industry-leading research.
For more news, videos and research from Jones Lang LaSalle’s Hotels & Hospitality Group, please visit: www.jll.com/hospitality or download the Hotels & Hospitality Group’s app from the App Store.
About Jones Lang LaSalle Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.7 billion of real estate assets under management. For further information, visit www.jll.com.
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