The Standard Hotel property, located at 8300 Sunset Blvd., on The Sunset Strip has finally been sold. Hotel Tycoons Ian Schrager and Ed Scheetz have completed their purchase of the quirky hotel after long delays due legal dispute over a billboard on the property.
The Real Deal reports that the limited liability company 8300 Sunset Owner, owned by Schrager and Scheetz, closed the deal on Wednesday, according to a source. The historical Standard Hotel property, which opened in 1999, and closed permanently in 2021, was purchased almost a year after the initial contract was signed for a price that was less than the original $120 million due to the delays.
A significant portion of the purchase price, approximately $30 million, was attributed to the signage rights of the billboard located above the hotel.
The seller, Randy Garitty of Rittersbacher Sunset LLC, declined to comment, and Schrager did not respond to a request for comment, but according to reports, CBRE acted as the broker for the seller.
The report also states that the property will not be operated under the Standard brand as both Schrager and Scheetz have their own hotel brands – Edition and Public for Schrager and Chelsea for Scheetz. Los Angeles only has one of these brands, Edition, which Schrager secured for a 190-key hotel located at 9040 West Sunset Boulevard in 2020.
Potential buyers have stated that any new owner would have to substantially renovate or demolish the building for the deal to be economically viable. However, the property was granted historic designation by the city of West Hollywood. This designation makes any future redevelopment plans challenging but not impossible.
The quirky Standard Hollywood Hotel opened on West Hollywood’s Sunset Strip in 1999. It was developed by Andre Balazs Properties. The structure was originally built in 1962 as the Thunderbird Motel. A lot of West Hollywood residents may remember when it was retirement home before Balazs purchased and remodeled it.
The hotel, famous for the upside down sign, offered a restaurant, bar, spa and it was home to several LGBT events and pool parties overlooking the city. It was also no stranger to celebrity guests, making a hotel destination during the various awards seasons in Hollywood.
The historical Standard Hotel closed during the Los Angeles County Stay at Home Order to slow the spread of COVID-19 and announced it had permanently shuttered and was up sale on October 2021.