About 5,300 hotel rooms are likely to be added in downtown Los Angeles over five years, helped by such developments as the $172 million construction of Marriott International Inc. (MAR)’s Courtyard and Residence Inn property.
Marriott, based in Bethesda, Maryland, will operate the 23- story building across the street from its existing JW Marriott and Ritz-Carlton hotels. The new property will house an upscale 174-room Courtyard and a 218-room Residence Inn for travelers staying longer. Los Angeles has about 1,700 hotel rooms within a half mile (0.8 kilometer) of the city’s convention center, said Tim Leiweke, president of Anschutz Entertainment Group.
“I predict in the next five years, we’ll have 7,000 rooms down here,” Leiweke said today at a news conference about the two Marriott properties, scheduled to open in mid-2014. Anschutz’s L.A. Live entertainment complex is home to the JW Marriott and Ritz-Carlton hotels.
The Courtyard and Residence Inn hotels will be financed with money from foreigners who can obtain permanent U.S. residency with so-called EB-5 visas, in exchange for investing a minimum of $500,000 and creating at least 10 long-term jobs. The project is being built by a partnership of investment company American Life Inc., based in Seattle, and developer Williams/Dame & Associates of Portland, Oregon.
Mayor Antonio Villaraigosa, who also spoke at the event, said that “the JW Marriott and the Ritz-Carlton are the anchors in this area and will be attracting a lot more development, such as these two new Marriott properties we’re celebrating today.”
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