In 2016, plans were announced for the opening of the Park Hyatt Los Angeles, which was supposed to open in 2019. A reader recently asked me what the latest was with this project, so I wanted to provide an update.
In this post:
Basics of the planned Park Hyatt DTLA
The Park Hyatt Downtown Los Angeles was initially supposed to open in early 2019, as part of a billion dollar mixed-use development project named Oceanwide Plaza. The project was being developed by Chinese conglomerate Oceanwide Holdings. This development was supposed to consist of three towers, located across the street from L.A. Live., on a full city block bounded by Figueroa, Flower, 11th, and 12th Streets.
One tower (49 floors) was supposed to have a 184-room Park Hyatt plus 164 serviced condo residences. Then the other two towers (40 floors) were supposed to include 340 residential condominiums, known as The Residences of Oceanwide Plaza. The development was also supposed to include 153,000 square feet of retail space, plus a 700-foot-tall LED display.
Interestingly this development was supposed to mark the return of the Park Hyatt brand to Los Angeles. Back in the day there used to be the Park Hyatt Los Angeles in Century City, which was eventually rebranded as the InterContinental Century City. That hotel closed in early 2021, though.
What happened to the Park Hyatt Los Angeles?
Construction on the development started in 2015, and a lot of progress was made. Finally construction stopped in early 2019, as the developer seemed to be having some financial issues, and cited restructuring of capital as the reason for work stopping.
Within a few months liens were paid off, and construction resumed. However, a few months later it once again stopped, in late 2019. Since then, nothing has happened, and the project has been stuck in limbo. This clearly seems to be part of a bigger issue with Chinese companies pulling back on capital investing in US real estate, as part of the ongoing trade dispute.
It has now been nearly three years since construction stopped, so what’s the latest? Well, an “unaudited interim results” report from Oceanwide Holdings claims that construction on the project will resume in 2023, as there are active negotiations with investors.
At this point the absolute earliest the development could open is 2025. However, $2.3 billion needs to be raised to complete construction of the development — that’s more than twice as much as the entire development was initially estimated to cost.
Of course there’s no guarantee that this will stick, and in many ways it sounds like not much progress has been made. You’d think there would be significant value in completing this project, but then again, this might just be one of those projects that ends up in perpetual limbo, given the financial complexity.
According to the developer, the physical structures and curtain walls for all three towers are completed. Inside the buildings, 85% of electrical and mechanical work has been completed, and in two of the towers 60% of drywall installation has been completed.
While I get that costs have gone way up, it’s a bit surprising that completing the project would cost $2.3 billion at this point.
Bottom line
Unfortunately the Park Hyatt Los Angeles is nowhere close to opening. The project has been fully stalled for three years now, and while the developers hope that construction will resume in 2023, this assumes that new investors will be found. $2.3 billion needs to be raised, and best case scenario the hotel will open in 2025.
At this point it’s anyone’s guess if this project is ever completed, and if so, whether Park Hyatt will still be involved. If the entire project is just sold off to a new company, it’s entirely possible as well that we also see a rebranding.
Do you think the Park Hyatt Los Angeles will ever open?
'Well, an “unaudited interim results” report from Oceanwide Holdings claims that construction on the project will resume in 2023, as there are active negotiations with investors.'
Don't believe anything you hear and only half of what you see, especially if it comes from Oceanwide. I can't believe the City has allowed these buildings to stand dormant for the past 2 + years.
Just so long as it's completed in time for the 2028 Summer Olympic & Paralympic Games!
Any word on the Thompson Palm Springs? I've been there twice in the last year and have seen absolutely no progress. This was supposed to be an Andaz. Meanwhile the Hyatt down the street keeps sending me texts and emails to "please come back", but that hotel is so dated and run down. It was kind of interesting 10 years ago, but now it's just sad.
This sounds like a job for Trump Corp.
Park Hyatt Los Angeles is nowhere close to opening maybe because it's Downtown LA?
I mean the Ritz Carlton LA is 2 mins walk from a I-110 homeless village.
Downtown LA has nothing to attract that many luxury hotel rooms.
That’s not entirely true, as it’s changed considerably over the past decade. The Conrad opened a few weeks ago opposite Walt Disney Concert Hall. There’s the Ace, Freehand, intercontinental,indigo and NoMad which all opened fairly recently, in addition to the Sheraton, biltmore and bonaventure. I’ve stayed in DTLA several times , has a number of good restaurants and bars, as well as the Music Center, Broad Museum and Crypto Arena.
Agree the homeless issue...
That’s not entirely true, as it’s changed considerably over the past decade. The Conrad opened a few weeks ago opposite Walt Disney Concert Hall. There’s the Ace, Freehand, intercontinental,indigo and NoMad which all opened fairly recently, in addition to the Sheraton, biltmore and bonaventure. I’ve stayed in DTLA several times , has a number of good restaurants and bars, as well as the Music Center, Broad Museum and Crypto Arena.
Agree the homeless issue is a big problem in California, however sadly it’s an issue in most western cities. Beverly Hills has numerous luxury hotels, but is pretty sterile.
70% of those you mention are not only not luxury, they aren't even full service. And some are just re-opening. DTLA used to be a nice place to stay, but it isn't anymore. You are correct that many Western cities have a homeless issue though.
LOL, @Icarus. The only thing downtown has changed is from homeless with a Staples shopping cart, is to homeless with a crypto.com wallet.
At least a decade ago you can build a tent from Staples office supplies or cardboard, you can't do sh*t with crypto NFT, not even as a shelter.
To the moon!
Good food can be found everywhere in LA not limited to downtown. That's probably the only positive thing about LA, and the weather for people who hate snow.
Ben, do you have any inside info on the Capital One transfer portal being down since last Friday? Every single partner shows "Down for Maintenance - please check back later." CS rep said they know about the issue but couldn't provide an ETA on when it'll be fixed, and said they couldn't transfer points over the phone either. Been wanting to transfer points to book an award J flight since Friday.
I have a Twitter text message from this morning from a rep saying there is no date to turn it back on, and in fact it is not down for maintenance.
How about writing about C1 turning off their transfer portal. It is NOT under maintenance as they suggest on the site, they have turned it off with no planned date to turn it back on.
This is some underhanded crap if true and there's no way I'll re-up my card come renew time.