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Embattled Santa Monica Hotel Reportedly Sells for Some $75 Million

Bob Kronovetrealty
We Love Property Management Headaches!

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By Jorge Casuso

May 20, 2021 -- A Santa Monica hotel embroiled in longstanding labor disputes with the union has reportedly sold.

The J.W. Marriott Le Merigot hotel at 1740 Ocean Avenue, which marketed the property for sale in February, sold to Stockdale Capital Partners for about $75 million, according to The Real Deal.

The deal between Westwood-based Stockdale and Kentucky-based Columbia Sussex closed May 11, the real estate news site reported Thursday.

Hearings were scheduled for May 3 before the California Division of Labor Standards Enforcement to determine claims filed against Columbia Sussex by eleven housekeepers in 2018.

UNITE HERE Local 11, which represents the hotel workers, had been seeking to end the labor dispute before the struggling hotel changed hands ("Hotel Union Seeks End to Labor Dispute Before Santa Monica Property Sells," February 15, 2021).

The union's battle with the hotel continued after workers voted 27 to 15 in November 2016 to unionize.

Local 11 complained Le Merigot refused to sign a contract with the union and began citing and firing workers who had supported the organizing effort.

In September 20019, the hotel agreed to pay more than $35,000 in worker bonuses as part of a settlement with the National Labor Relations Board reached less than two weeks before hearings were scheduled to begin.

It also offered to reinstate a fired worker ("Santa Monica Hotel Settles Worker Complaints with Labor Board," September 16, 2019).

Kurt Petersen, co-president of Unite Here Local 11, told The Real Deal that he was excited to work with the hotel's new owner, according to the Real Deal.

Union members, he told the news site, want "peace, not to continue the war.”

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