Freehand Los Angeles Hotel Faces $71 Million Foreclosure as Hospitality Industry Struggles
As the hospitality industry faces challenges, the trendy hotel-meets-hostel in downtown Los Angeles defaults on its debt and faces foreclosure.
The Freehand Los Angeles Hotel, located at 416 West 8th Street, is facing a $71 million foreclosure after defaulting on its debt to lender Trimont. The borrower, a company connected to Generator Hostels, failed to make payments, according to a notice of default and election to sell recorded this month.
Generator Hostels is owned by London-based private equity firm Queensgate Investments, who purchased the Freehand Hotels brand six years ago for $400 million from Sydell Group. The acquisition included hotels in Miami, Chicago, and New York, totaling about 1,000 rooms.
The hospitality industry has been hit hard by the pandemic, with hotels struggling to stay afloat amid travel restrictions and decreased demand. The Freehand Los Angeles Hotel is just one of many hotels facing financial troubles in the current climate.
"The hospitality industry is facing unprecedented challenges, and it's no surprise that even trendy and popular properties like the Freehand Los Angeles Hotel are struggling," said a spokesperson for Queensgate Investments.
The Freehand Los Angeles Hotel, known for its trendy accommodations and hostel-style rooms, has become a popular destination for travelers and locals alike. However, with the uncertainty surrounding the future of the hospitality industry, the hotel's financial troubles may only be the beginning.
Originally reported by The Real Deal.
https://therealdeal.com/la/2025/09/30/freehand-los-angeles-hotel-faces-71-million-foreclosure/