LA Greenlights 175-Room Hotel for Sunset Boulevard


NELA Group has the green light to construct a 13-story hotel on Sunset Boulevard in the heart of Hollywood, Calif.

The Los Angeles City Council last week voted to approve what will be called The Sunset Hotel, a 175-room hotel and 11,400 square feet of restaurant space, including a rooftop restaurant, Urbanize reported. The development will replace a midcentury commercial building at 6445 West Sunset Boulevard after 22 months of construction. 

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Archeon Group designed the 173-foot tower.

The project will add to a string of similar developments within a growing hotel and restaurant district in the immediate area in Hollywood. R.D. Olson’s 21-story, 275-room Ivar Gardens Hotel is also underway a half block east.

The hospitality sector in Southern California is performing well as inflation pushes rates higher, according to a report earlier this year by Matthews Real Estate Investment Services. Los Angeles has one of the highest number of hotel rooms under construction in the U.S. and by far the most in the state, with approximately 3,200 rooms across 22 hotels under construction.

Nationally, average nightly hotel rates rose to $152.01 in February, a 7 percent increase from its average of $142.11 in January and a 10.3 percent increase from February last year. The total volume of U.S. hotel investment sales dropped to $7 billion in the first quarter, a 55 percent decline from the $15.49 billion of transactions that closed in the fourth quarter of last year, according to CoStar data.

Gregory Cornfield can be reached at