The Chinese owners of a former department store site in Beverly Hills — long considered one of the region’s most desirable development locations — are proposing to add a top-of-the-line hotel in their planned $1-billion condominium complex.
Wanda Group, which bought the property at 9900 Wilshire Blvd. last year, said Wednesday that it planned to reduce the number of condos in the development, designed by Getty Center architect Richard Meier, to make way for a luxury hotel.
Beverly Hills is one of the top U.S. hotel markets and could absorb a new luxury entrant without difficulty, hospitality consultant Bruce Baltin of PKF Consulting said. The luxury hotel market suffered badly in the last economic downturn, but room rates have since risen to all-time highs, Baltin said.
“L.A. is getting to be more of a world city and getting more international business,” Baltin said. “Our rates are reasonable compared to the rest of the world.”
Top hotels in Beverly Hills were nearly 80% occupied last year and charged guests an average of $453 a night, according to PKF. Baltin predicts that by the end of this year the average daily rate will rise to $480, a number unlikely to make well-heeled travelers balk. Five-star properties in the area include the Peninsula Beverly Hills, the Montage Beverly Hills, the Beverly Hills Hotel and the Hotel Bel-Air.
Read more at the Los Angeles Times.