John Rutledge’s Godfrey Hotel Hollywood Faces Foreclosure
Lenders led by an AllianceBernstein fund initiated the first steps towards foreclosing on $59.1 million worth of debt associated with the five-year-old Godfrey Hotel Hollywood located at 1400 N. Cahuenga Blvd., according to a default notice recorded in October.
Rutledge’s Oxford Capital Group acquired the 20,000-square-foot development site in 2016 for $16.5 million amidst a hotel construction boom in Hollywood. Oxford spent five years constructing the 220-key boutique hotel, part of its brand launched in Boston, Detroit, and Chicago.
Oxford’s joint venture partner, Goldman Sachs, sold its stake in the seven-story Cahuenga Boulevard property the following year to Related Fund Management, the asset management arm of Related Cos., valuing the property at $114 million, or approximately $518,000 per room, according to a June 2022 deed.
A lender group registered in Luxembourg, led by Nashville-based investment manager AllianceBernstein, provided a $76.5 million variable-rate loan for the acquisition, per a deed of trust recorded the same day. Oxford described the 2022 deal as a recapitalization of the Godfrey Hollywood’s construction debt, with Related taking over the property’s preferred equity and AllianceBernstein providing new senior debt.
Rutledge noted at the time that the handoff was "a testament to the resilience and growth prospects of Los Angeles and the dynamism of the Hollywood submarket." It’s unclear if Rutledge’s firm retained an ownership stake, though it continues to operate the hotel through its Oxford Hotels & Resorts.
Lender Actions and Foreclosures
Lenders have taken action against Oxford-run hotels in other cities. In February, Quadrum Global sued to foreclose on Oxford’s 221-room Godfrey Hotel in Chicago, partially secured by a $23.5 million EB-5 visa program subordinate loan. In 2024, Oxford returned four San Francisco hotels to their lenders, but retained operations in those properties.
The loan for the Godfrey Hollywood matured this year, and the hotel owners have failed to make payments, as indicated in the October 8 notice. Lenders may choose to sell the hotel’s furniture and fixtures, along with the building, in a single foreclosure sale.
Representatives from Related and AllianceBernstein did not respond to requests for comment.
The Godfrey is one of several large hotels that broke ground in the area prior to the 2020 pandemic, which caused construction delays. Adolfo Suaya, a restaurant and hotel owner who built the 134-room Whisky Hotel, previously stated that the construction boom five years ago was "just the beginning," predicting robust growth in Hollywood. That prediction did not fully materialize. Several hotels, including the former Tommie Hollywood and Thompson Hollywood, have changed hands, with Marriott International rebranding them as Hollywood Volume and Hollywood Grande, respectively.