Lenders Start Foreclosure on Godfrey Hollywood Hotel
Lenders led by an AllianceBernstein fund have begun foreclosure on $59.1 million in debt tied to the 220-room Hollywood hotel.
Updated on Nov. 9, 2026 in Hospitality
Lenders led by an AllianceBernstein fund took the first step toward foreclosing on $59.1 million in debt tied to the Godfrey Hollywood hotel, after a default notice dated October 8, 2026. Oxford Capital Group stopped paying after the loan matured in 2026, though it continues to operate the property.
Why it matters
The loan matured this year while the hotel's owners have failed to pay, leaving lenders poised to take control of a Los Angeles hospitality asset. Residents and visitors in Los Angeles may see changes in ownership or operation of the Hollywood property depending on how the process resolves.
The $59.1 million in defaulted debt compares with the $76.5 million variable-rate loan that financed the 2022 acquisition at a $114 million valuation, or about $518,000 per room. Whether lenders will sell the furniture and fixtures alongside the building in a single sale has not been determined.
The players
AllianceBernstein
A global investment management firm whose fund leads the lender group seeking to foreclose on the Godfrey Hollywood debt.
Oxford Capital Group
A boutique hospitality developer that built the Godfrey Hollywood and continues to operate it through Oxford Hotels & Resorts.
Related Fund Management
The investment firm that acquired Goldman Sachs' stake in the property in 2022.
The details
Oxford Capital Group bought the 20,000-square-foot development site in 2016 for $16.5 million and completed the 220-key hotel at 1400 N. Cahuenga Blvd. in five years. Under the 2022 deal, Goldman Sachs sold its stake to Related Fund Management, while a Luxembourg-registered lender group led by AllianceBernstein provided new senior debt.
Timeline
June 2022: Related's acquisition and the $76.5 million loan were recorded.
2026: The Godfrey Hollywood loan matured.
October 8, 2026: A default notice was dated and foreclosure proceedings began.
Market Landscape
The 2022 recapitalization that restructured Godfrey Hollywood's construction debt has now failed at maturity, a signal for how Los Angeles hotel lenders are handling leveraged boutique projects. Oxford's separate hotel in Chicago is also in default, suggesting the pressure extends beyond a single asset.
For Los Angeles travelers booking the Godfrey Hollywood, the property remains open and operating under Oxford Hotels & Resorts while the foreclosure process proceeds. Any future change in ownership could alter staffing, pricing or amenities at the hotel.
The takeaway
Hotel projects financed with variable-rate senior debt can face sharp consequences when loans mature without refinancing. Readers following Los Angeles hospitality should watch whether lenders sell the property or reach a workout with the owners.
Further reading
Explore more Hospitality coverage to see how lending pressures are reshaping Los Angeles hotels.
Source note: This article includes information reported by Los Angeles Business Journal.
