One of the most prestigious luxury hotels in California, The Sheraton Universal Hotel after suffering from major financial concerns has finally been put up for sale in the real estate business. With the advent of the global economic downturn in the year 2009, the hotel industry has become one of the hardest hit sectors of the economy and since the year 2008, the hotel values have been consistently on a decline. Lowe Enterprises had purchased this luxury 451-room hotel property in the year 2007 for a price of $122 million and further spent $25 million on renovations.
The Sheraton Universal Hotel witnessed a deep slump in hotel reservations as luxury travel became almost non-existent during the recession time. This lead to a substantial decrease the hotel’s revenues and due to these circumstances, Lowe Enterprises finally lost control of the property this year.
In the month of February 2010, the Sheraton Universal Hotel was appraised by Trepp and was valued at $75 million. There are bright hopes for the sale of this luxury hotel property, due to the fact that the hotel itself is situated in a central location and because of the location factor, it would become really difficult for the competitors to file for the construction of a new rival hotel.