Anza Hotels, Calabasas, CA
Closed in July of 2012, the Anza Hotel (the “Anza”) was a value-add joint venture equity investment in a 122-key select service hotel located in Calabasas, CA. The Anza was a lender-owned (REO) asset operating under the Country Inn & Suites brand. The hotel suffered from deferred maintenance, mismanagement and lack of capital. The asset had not had a renovation or FF&E replacement in approximately 15 years.
Our business plan called for closing the hotel and completing a full renovation of all areas of the asset to reposition it as a boutique independent (unbranded) hotel. Located in an affluent suburb of Los Angeles with barriers to new supply the fully renovated basis was projected to be at a significant discount to replacement cost and therefore creating a highly attractive value investment for Arris. Another key component to the business plan was to bring inst itutional quality hotel management to the repositioned asset. The employment of sales, revenue and expense management expertise were projected to significantly drive strong yields and cash flow for the investment. Evolution Hospitality was part of the underwriting and ownership team and was contracted to manage the asset.
After completing the renovation during late 2012 and early 2013, the Anza was reopened in the Q3 2013. Upon stabilization, the joint venture elected to refinance the asset with less expensive bank financing. The investment was sold in 2016.
Key Investment Stats
# of Units/Square Feet:
Calabasas, CA (Los Angeles Metro)
Lowe Enterprises / Wells Fargo
Channel West Group