Breaking News in Beverly Hills, CA the L'Ermitage hotel is on the Market

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Real Estate Agent with Berkshire Hathaway HomeServices 01238708

Breaking news in Beverly Hills, CA the L'Ermitage hotel is on the market. I was reading in the Commercial Real Estate News syndicated by LoopNet that there are multiple offers on The Raffles-L'Ermitage Hotel.

 At first glance one would think, this is fantastic, on the other hand we need to look at the Real Story here. In the year 2000 the Beverly Hills property was acquired for $68 million

This was major news then, since the per-room price at the time was a record for a Los Angeles area hotel not being on the beach.

 Since then the property's performance has slumped. The occupancy rate is down to about 65% and without saying so is the cash flow. That means based on sources reporting a  high bid of $40 million and a cash flow of $1 million translating to a  Capitalization Rate of 2.5% , which is  hard to believe, when full service luxury hotels in the area have been selling at a cap rate of 8%-9%.

 This is very telling.

 

If you are a consumer  who is considering buying  or selling  a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at homes@endrebarath.com  or visit one of my websites at http://www.endrebarath.com  Your Pet Friendly Realtor. I contribute a portion of My commission to Local Animal Rescue Organizations.  

                                                                                            

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Rainmaker
710,627
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Seems like every sector of the economy is feeling the pinch, some worse than others. We've read of several businesses closing because of dismal sales.

May WE thrive!

God help us all.

Jan 08, 2010 06:27 PM #1
Rainer
37,668
Cheryl Frei - RealtorĀ® & e-Pro Certified RealtorĀ®
Elite Realty - Absarokee, Montana and Billings, Montana - Absarokee, MT

Endre - Do I know what you mean! It been like that here too. I do hope the economy start getting better soon. 

Jan 09, 2010 06:58 AM #2
Rainer
321,367
Russel Ray, San Diego Business & Marketing Consultant & Photographer
Russel Ray - San Diego State University, CA

That is very telling. The Hotel del Coronado sold for something like $384 million back in 2001, I think it was, making it the most expensive real estate in the United States. I kept expecting it to go into foreclosures during the past three years, but I guess they have things under control.

Jan 09, 2010 08:04 PM #3
Rainmaker
230,570
Haris Dedic
RE/MAX Villager 847-878-2588 - Glenview, IL
Glenview Real Estate - Chicago North Shore

Luckily they did not ask for free money :)
I hope this cycle ends soon.

Jan 11, 2010 02:30 AM #4
Rainmaker
985,918
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

I smell opportunity.

Jan 11, 2010 09:35 PM #5
Rainmaker
3,209,278
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Pacita, you are so right, every one is feeling the squeeze.

Jan 26, 2010 06:54 PM #6
Rainmaker
3,209,278
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Cheryl, hope things have imroved in your part of the world

Jan 26, 2010 06:55 PM #7
Rainmaker
3,209,278
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Russell, let us know, hope not, I like the bar  and the breakfeast  there:))

Jan 26, 2010 06:59 PM #8
Rainmaker
3,209,278
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Haris, I think we have a few more years of challenging times

Jan 26, 2010 07:00 PM #9
Rainmaker
3,209,278
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Will the supreme optimist, love it you are right

Jan 26, 2010 07:01 PM #10
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Rainmaker
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Endre Barath, Jr.

Realtor - Los Angeles Home Sales 310.486.1002
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