On September 12, 2024, the Los Angeles City Planning Commission unanimously recommended approval for the significant expansion of the Hilton Universal City Hotel, located near Universal Studios Hollywood. This major development, proposed by Sun Hill Properties, envisions the addition of an 18-story tower that will bring 395 guest rooms to the existing 24-story hotel at 555 E. Universal Hollywood Drive, increasing the total room count to 890, according to city documents reviewed by The Registry. The project is seen as a strategic investment in Los Angeles’ hospitality sector, especially as the city prepares for the expected visitors during the 2028 Summer Olympics.
Designed by Ankrom Moisan, the new tower will feature a distinctive diamond-shaped footprint, with plans for a rooftop pool, further enhancing the hotel’s appeal. Alongside the guest rooms, the expansion will introduce 460 new parking spaces, supplementing the current 652 available spaces ensuring the facility can handle the anticipated rise in guest volume.
In addition to increased capacity, the expansion will transform the hotel with new amenities, including a spa, three restaurants, an indoor/outdoor bar, two pools, and an enlarged lobby lounge connecting the new tower with the existing structure. The meeting facilities will also benefit from a 3,000-square-foot increase, catering to the growing demand for event space in the region.
The expansion project is part of Los Angeles’ broader efforts to upgrade its infrastructure ahead of the 2028 Summer Olympics. According to Sun Hill Properties’ President and CEO, Mark Davis, the new tower will help the Hilton Universal City meet the growing demand for accommodations from both tourists and business travelers. Davis noted that Universal Studios remains a vital driver of tourism in Los Angeles, making the expansion a crucial part of the city’s hospitality growth.
While construction was initially scheduled to begin in 2023, delays tied to securing financial incentives have extended the project’s timeline. The development team is seeking assistance from the City of Los Angeles in the form of tax incentives, which could include a rebate on transient occupancy tax revenues—a strategy employed in previous hotel projects to offset construction costs. Once final approvals, including a zone change, are secured from the Los Angeles City Council, construction is expected to take approximately 30 months.
Located on a 7.26-acre lot along Universal Hollywood Drive, adjacent to the Universal/Studio City Metro station, the expansion is not without its regulatory challenges. The site is situated in both a landslide area and a Very High Fire Hazard Severity Zone. However, Sun Hill Properties has worked closely with city regulators to ensure the project meets all safety and building requirements.
To facilitate the development, the company has requested a Vesting Zone Change and a Height District Change, allowing consistent zoning across the entire property. Despite these adjustments, the original hotel building and associated facilities will remain intact, with the new tower seamlessly integrating into the existing hotel’s footprint.
Sun Hill Properties has received widespread support for the project from the local community, labor unions, and Councilmember Nithya Raman. This expansion underscores the importance of public-private partnerships in delivering large-scale developments that contribute to the city’s economic growth while maintaining its commitment to safety and sustainability.
