Slatkin Brothers Pursue $700M Hotel Recapitalization to Build Luxury Housing in SoCal
The hoteliers want to develop more than 350 residences next to two hotels they developed in the 1990s.
By Nick Trombola February 4, 2025 4:31 pm
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A pair of hotelier brothers behind the luxury Edward Thomas Collection properties in Santa Monica want to develop land adjacent to their waterfront hotels in the famed Southern California enclave, and are seeking out a hefty capital raise to make it happen.
Brothers Edward and Thomas Slatkin are exploring a roughly $700 million recapitalization for Shutters on the Beach at 1 Pico Boulevard and Casa Del Mar next door at 1910 Ocean Way. The news was first reported by Bloomberg, citing confidential sources.
The Slatkins are working with Eastdil Secured on the effort to revalue the two hotels, which the brothers developed in the 1990s with roughly 330 total rooms. If a $700 million evaluation is achieved, it would equate to well over $2 million per key.
Land adjacent to the hotels could be worth up to $100 million, per Bloomberg, although the ownership isn’t seeking a sale of the properties. Instead, the brothers intend to develop more than 350 branded residences, Thomas Slatkin told Bloomberg in an email.
The Slatkins were not immediately available for comment. A representative for Eastdil declined to comment.
Last summer, the Slatkins secured a $400 million loan package from Citigroup (C) and Goldman Sachs (GS) for the Santa Monica properties, refinancing $430 million in existing debt tied to the hotels. Edward Thomas Collection also provided $43 million to help close the deal, paying off some of the debt and associated costs. The properties were together appraised at $605 million at the time, per Bloomberg.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
