Luxury Hotel SLS Beverly Hills has been put up for sale by Sam Nazarian, owner and founder of the hotel’s parent company SBE Entertainment Group LLC. Luxury resort designed by startchitect Philippe Starck could sell for about $210 million. This move is part of a strategy to cash in on the company’s real estate investments and focus on its management operations. “We are confident the SLS Beverly Hills will sell for more than $210 million if you look at how the property is performing, the possibility to add on development to the existing hotel and the revitalization of that neighborhood,” Nazarian said in a telephone interview with Bloomberg.
SBE is seeking to profit on investments made when the company was starting to establish the luxury-hotel chain in the early 2000s. With five hotel properties open and demand for high-end lodging at the highest since the 2007 peak, Nazarian said the time is right to sell the real estate while expanding the company’s management contracts.
“Our strategy is to move to the asset-light model,” he said. “The market is very hot right now. L.A. is trailing some of the bigger cities like New York and Miami, but it is recovering nicely. And Miami is as hot as it can be.”
According to Real Estate Alert, Nazarian acquired the hotel in 2005 for $90 million. Prior to the acquisition, the hotel belonged to the Le meridian Hotels and Resorts group.
SLS Beverly Hills hotel is located at 465 South La Cienega Boulevard, along the border of West Hollywood and Beverly Hills. It is stacked with several luxury amenities like the “Ciel Spa & Robert Vetica Salon”, “Altitude Pools” with cabanas, fine dining, gym and retail centers as well.