The renowned hoteliers Ian Schrager and Ed Scheetz have secured bridge financing amounting to USD 116.5 million. This is for the refinancing of a hotel in Los Angeles, which is on the verge of its Hollywood debut. The lenders are Driftwood Capital and Benefit Street Partners.
The financing is earmarked for the Public Hotel West Hollywood, which is scheduled to open in September on the Sunset Strip, at the former site of the Standard Hotel. Schrager and Scheetz acquired the property in spring 2023 for USD 112.5 million after the closure of the Standard Hotel in 2021, and have since comprehensively redeveloped it.
Cushman & Wakefield was responsible for negotiating the financing. The team was led by Rob Rubano, JP LeVeque, and Joe Lieske. Rob Rubano, Executive Vice Chair and Head of Equity, Debt and Structured Finance at Cushman & Wakefield, expressed a positive view of the outcome.
Rubano emphasised that the quality of the asset and the strength of the sponsorship led to a robust financing execution, positioning the property for long-term success. He also pointed to a significant revitalisation of the Sunset Strip, which makes the timing for the Public Hotel ideal to capitalise on the momentum and anticipation surrounding its reopening.
The 137-room hotel at 8300 Sunset Boulevard has undergone extensive refurbishment since its acquisition by Schrager and Scheetz. Guest rooms and suites have been redesigned, and additional amenities such as a new rooftop terrace and a nightclub have been created. This comprehensive renovation programme aims to enhance the property's appeal in Los Angeles' competitive hospitality market.
