A huge new 1,100 room hotel called "Fig+Pico" (for its location at the corner of Figueroa Street and Pico Boulevard) was announced this week by Lightstone Group. The property is adjacent to the Los Angeles Convention Center. The Gensler-designed project will consist of two towers, one 40 stories and the other 28, and will cost $450 million.
Los Angeles - A Convention Powerhouse
The announcement is a testament to the continued strength of Los Angeles as a destination for the convention sector and for tourism generally. According to the Los Angeles Convention Center, 2016 saw a 30% rise in conventions throughout Los Angeles, which drives revenue and growth for the city.
"Citywide conventions stimulate the local economy and help sustain thousands of jobs through attendee direct and indirect spending,” commented Jon F. Vein, President, Board of Los Angeles Convention & Tourism Development Commissioners, leading directly to new investments like the Fig+Pico hotel.
Mitchell Hochberg, president of Lightstone, agrees. “We think there is a great demand for hotel rooms downtown today,” he said “When the Convention Center expansion is finally built, that demand will increase.”
L.A. city officials began working on Convention Center expansion plans last year after learning that downtown would not become home to a new football stadium. Officials last summer selected architects to design increased meeting and exhibition space and add a 1,000-room hotel.
Then, early this year, the city began considering a new proposal that would build bigger facilities in partnership with private developers. Anschutz Entertainment Group was slated to build a 755-room expansion to its Ritz-Carlton and J.W. Marriott tower, but last month abandoned the project, claiming that the city’s plan for an even bigger hotel would infringe on AEG’s property rights.
Los Angeles Hotel Construction is Booming
Overall, hotel construction in Los Angeles is booming. Across Los Angeles, 133 hotels with 19,800 rooms are in the planning stages, according to a recent report from Irvine-based Atlas Hospitality Group. In addition, 37 hotels are under construction, set to offer 6,772 rooms. The largest of those is the InterContinental Los Angeles Downtown with 900 rooms, inside the 73-story Wilshire Grand tower.