Special Report Who’s Who In Real Estate: Bruce Baltin

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Bruce Baltin has been involved in hotel industry projects in Los Angeles for 43 years, consulting on development and acquisitions, investment analysis and offering asset advisory services, among others. He has worked on a huge variety of projects, including drawing up projections for the L.A. Olympic Organizing Committee that were used to solicit and underwrite the 1984 Olympics. More recently, he was involved in predevelopment planning that brought the JW Marriott and Ritz-Carlton hotels to L.A. Live as well as work on boutique hotel projects such as the W Hollywood.

When and how did you get started in the hotel business?

I worked in restaurants in high school and found that I really enjoyed the hospitality business. I studied hospitality management at Cornell University and found that while I love hospitality I also really enjoyed the analytical side of the business and gravitated in that direction.


What do you like about the L.A. hotel market? How does it compare to other major U.S. markets?

I really enjoy the diversity of product and customer bases in the L.A. hotel market. Los Angeles is a very spread-out, diverse and strong hotel market catering to the creative industries, the financial and business services industries, international trade, leisure and group market segments. This diversity allows us to have a wide range of hotel product at all price points and with a diversity of character, architectural styles and services.

What makes hotels a good investment now? How long do you see the construction boom lasting? And why?

While the hotel business is cyclical, we are at a good point in the cycle right now where demand is strong, occupancy levels are at a peak and supply growth is projected to be modest over the next several years, as it has been for some time. The expectation is that we will be at this peak for at least the next several years and possibly even longer, though there will be ups and downs in the longer-term future, as there always are.

How has the business changed in the last couple of years?

The business continues to change with more use of social media, a continued proliferation of booking channels and the continued growth both of hotel brands and boutique hotels. In Los Angeles, L.A. Live and the strengthening of downtown as a whole with its restaurants, residential base and other offerings has really helped to strengthen the overall hotel market and give it more visibility both nationally and internationally.


What’s the most challenging part of putting together a hotel transaction?

The most challenging part of putting a transaction together is getting everybody on the same page in underwriting the market, real estate and business aspects of the hotel operation. One has to be able to anticipate market conditions and customer preferences and match the price paid and financing terms to them properly.

What is the most rewarding?

The most rewarding part of putting a transaction together, whether it is new development or purchase and repositioning of an existing hotel, is participating in the creation of something that can help to revitalize an area at the same time it brings pleasure to its guests. While I love the side of the business that I’m on – the project side – I got into this business because I love hospitality, and that feeling never leaves you.


What is your favorite hotel that you have not been part of?

I’d have to say the Mansion on Turtle Creek in Dallas because it works really well from an aesthetic, service and functionality level.

– Bethany Firnhaber

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