In 2016, announcements were made regarding the Park Hyatt Los Angeles, intended to debut in 2019. Regrettably, the situation has not unfolded as expected. Construction on the site began in 2015, and the project reached its highest point in 2019, but construction has been at a standstill ever since, with these towers now abandoned for seven years. Is there finally a hopeful update on the horizon, though?
Park Hyatt Los Angeles at Oceanwide Plaza background
Originally, the Park Hyatt Downtown Los Angeles was slated to open in 2019 as part of an extensive billion-dollar mixed-use development project called Oceanwide Plaza. This undertaking was being managed by the Chinese conglomerate Oceanwide Holdings. The development was planned to feature three towers situated across from L.A. Live, encompassing a full city block bordered by Figueroa, Flower, 11th, and 12th Streets.
One of the towers (49 floors) was meant to house a 184-room Park Hyatt along with 164 serviced condo residences. The other two towers (40 floors each) were envisioned to consist of 340 residential condominiums, referred to as The Residences of Oceanwide Plaza. The project was also expected to include 153,000 square feet of retail area, plus a massive 700-foot-tall LED display.
Interestingly, this development was intended to signal the Park Hyatt brand’s return to Los Angeles. There once was a Park Hyatt Los Angeles located in Century City, which eventually became the InterContinental Century City. However, that hotel closed its doors in early 2021.
In any case, construction on Oceanwide Plaza initially ceased in early 2019, even though all three towers had reached their maximum height. The developer appeared to face some financial challenges and attributed the work stoppage to the restructuring of capital.
After a few months, liens were settled, and construction recommenced. Yet, several months later, in late 2019, work stopped once more. Since then, progress has been halted, and the project has been mired in uncertainty. This seems to correlate with a broader issue of Chinese firms retracting their real estate investments in the United States.
For years, there had been assertions that the project’s work would continue. According to the developer at the time, the physical structures and curtain walls for all three towers were finished. Inside, 85% of electrical and mechanical tasks had been completed, and in two of the towers, 60% of drywall installation was done.
Nonetheless, estimates from 2022 indicated that it would require $2.3 billion to finalize the construction of the development, double the initial projected cost. This site has increasingly become known as the graffiti towers, morphing into a significant eyesore in DTLA.
Oceanwide Plaza project being acquired in bankruptcy
There’s now an update on the Oceanwide Plaza situation, as the project is undergoing bankruptcy proceedings. The Los Angeles Times reports that California-based real estate developer KPC Development is looking to purchase Oceanwide Plaza for $470 million, with bankruptcy court approval anticipated by April 9, 2026.
If a better qualified offer doesn’t surface by that deadline, the court is likely to endorse the sale. Once the new developer takes over, the objective is to first eliminate graffiti, and then move forward with construction of housing, a hotel, retail spaces, and dining options, as was originally intended. However, the project will be given a new name, as Oceanwide Plaza was derived from the previous owner.
While this news brings hope that someone finally intends to complete the project, it should be noted that it remains uncertain whether it will retain the Park Hyatt branding. The prospective new owner plans to finalize the project and maintain a hotel aspect, but this does not guarantee it will be a Park Hyatt.
For what it’s worth, Hyatt’s property development page currently still lists this as a Park Hyatt project.
For the moment, we’ll categorize this as “developing.” Some news is certainly better than none. I would anticipate that, in the best-case scenario, we are probably eyeing a 2029 opening at this juncture. And that assumes the progress goes anywhere at all…
Bottom line
The Park Hyatt Los Angeles was introduced nearly a decade ago, yet it still hasn’t materialized. Although the development topped out in 2019, no progress has been made in the last seven years… aside from the relentless graffiti.
There is, however, a potentially promising update, as a California real estate developer has committed to purchasing this project in bankruptcy court, and if there isn’t a superior offer by April, this agreement should be finalized. The developer’s intention is to proceed with the project as originally outlined, though it remains to be seen whether the hotel aspect will keep the Park Hyatt name.
Even if this deal successfully closes, realistically, I envision it’ll be a