The Sunset Tower Hotel, a fixture on the Sunset Strip, is quietly up for sale, and is looking to fetch a hefty sum. The New York Post reports that Sunset Tower owners ER Hollywood and Jeff Klein have hired a team of brokers to help them find a buyer willing to fork over $100 million for the Sunset Strip hotel.
WeHoville says there are already “three offers for the property, one somewhat above $100 million, one near that mark and one somewhat below it.” The Real Deal says that if the hotel sells in just the $90-million price range, “the $1.1 million a room pricetag would make the WeHo record books.”
The 81-room Sunset Tower Hotel was designed by Leland Bryant, the architect behind some of the most beautiful vintage apartment buildings in the city, including the historic Colonial House in Hollywood. The Art Deco tower opened in 1931, and enjoyed a star-studded few decades as celebrities like Howard Hughes, Marilyn Monroe, and John Wayne took up residence in the building, says WeHoville.
The seminal handbook An Architectural Guidebook to Los Angeles called the Sunset Tower “as much an emblem of Hollywood as the Hollywood sign.”
But the stars moved on, and the Sunset Tower “went into a steep decline in the 1980s” that wasn’t halted until 2004, when Klein and partner Peter Krulewitch purchased the property for $18.5 million and thoroughly renovated it, says the Post.
Klein’s management of the hotel and its bar are often credited with turning the hotel around and making it a “go-to location” for entertainment industry movers and shakers. In 2009, Vanity Fair held their first Oscars after-party at the tower; it returned each year until 2013, when it moved on to a bigger venue.
“Klein turned what was basically a $99-a-night dump into an iconic destination,” an unnamed source told the Post.
ER Hollywood purchased an 80 percent stake, including Krulwitch's share, for $60 million in 2015, when the entire hotel was valued at $75 million. Klein maintains a stake of approximately 20 percent. It’s unclear if Klein will stay on post-sale to manage the property. He has recently taken on a new project, transforming the once-seamy San Vicente Inn into a chic boutique hotel.
Correction: A earlier version of this article incorrectly stated the name of the entity that currently co-owns the Sunset Tower Hotel with Jeff Klein. It also misstated how much of the tower Peter Krulewitch owned when he sold his stake to ER Hollywood in 2015.