Ending months of public back and forth between mega-developer Rick Caruso and hotel owner Ray Patel, today the two sides announced an agreement has been reached to sell Patel's Golden Key Hotel to Caruso so the developer can expand his Americana mall. The sale price was not disclosed by either Caruso or Patel. But in a phone interview this afternoon, Patel characterized the price as "fair." The hotel will continue to operate until the end of 2011, he said. News of a pending deal was first announced by the Glendale News Press in late February, but the sale was delayed while paperwork was sent to Patel's relatives in India, who have a stake in the hotel, so they could sign off on the deal.
Earlier this year, Patel was offered $6 million by Caruso for the hotel, which falls within a redevelopment zone, and could feasibly been seized through eminent domain by the city of Glendale. But Patel, who also owns a hotel in Eagle Rock, rebuffed Caruso's offer, saying the hotel wasn't for sale. In court filings in a unrelated lawsuit between the two parties, however, it was reported that Patel estimated the value of the 55-room inn at between $15 million and $17 million.
Will the price that Caruso paid for the Golden Key Hotel ever come out in the media? Either way, there's probably some relief the fight, which some people hoped would head to court amid the city's talk of eminent domain, is over. At a February Glendale City Hall hearing, one city official, who asked to remain anonymous, had little sympathy for either side. "This is a fight between a millionaire and a billionaire," he said.
Today, Patel dismissed the characterization of himself as a millionaire, saying he was "just a regular guy."
· Golden Key-Americana Archives [Curbed LA]