The tech industry drives increasing hotel demand in Silicon Beach; Chatham hopes to deliver.
Silicon Valley has been expanding its reaches in Northern California for years now, but Silicon Beach—its Southern California counterpart that houses the tech centers of giants like YouTube, BuzzFeed, and Google—has also begun taking off. As Silicon Beach houses over 500 technology startup companies in its Westside region in Los Angeles, it's not surprising that the need for hotel rooms in the area is rising.
Take Marina del Rey for example. To date, revenue per available room is already up 17 percent this year. Real estate investment trust Chatham Lodging has taken note of the skyrocketing demand, and has purchased the Hilton Garden Inn in the city.
The 134 room property sold for $332,000 per room. Chatham believes this investment, which grows their portfolio's room count by 11 percent, will more than pay off thanks to the nearby offices of Facebook, Sony, Yahoo, Microsoft, Google, YouTube, and Belkin.
More good news for Chatham: thanks to the fact that the property was converted to a Hilton as recently as 2013, they need only make minimal brand-required improvements to get the property ready for their market.
If Silicon Valley is any indicator, Silicon Beach will only continue to heat up. Are you capitalizing on it? To solidify your hold on this burgeoning market,
contact Parkwest General Contractors. We can put our
hospitality construction services to work for you, helping you distinguish your property so it can continue to succeed in this thriving market.
