The ongoing construction of the ‘Shilla Stay LA’ business hotel in Los Angeles’ Koreatown has been temporarily halted, raising questions.
The hotel was planned to be developed within a five-story building located at the corner of Olympic Boulevard and Union Avenue, positioned between Koreatown and downtown LA. The construction primarily focused on seismic reinforcement of the building.
The project is being led by SSH America LLC, a Korean investor group headed by CEO Ahn Sang-Yoon. After purchasing the building in November 2023, the company announced plans to renovate and operate it as ‘Shilla Stay LA,’ generating significant interest.
SSH America revealed at the time that they would invest $74 million to complete the hotel and then hand it over to Hotel Shilla for operations.
However, the project has encountered obstacles due to high exchange rates and interest rates. The South Korean won’s value plummeted to 1,450 won per dollar due to the political situation in Korea and Trump-era tariffs, while high interest rates in the U.S. have made securing funding more challenging.
At the time of the project announcement, the exchange rate was around 1,320 won to the dollar.
Furthermore, the plan to raise $40 million of the $74 million project cost through the EB-5 investor visa program (with 50 investors) has been affected by the Trump administration’s strict immigration policies.
As a result, the developers have decided to adjust the construction pace to reflect the current market conditions.
Ahn Sang-Yoon, CEO of SSH America, mentioned that he is currently in Korea holding meetings with Hotel Shilla and investors.
In a phone interview with the Korea Daily, he explained, “Due to the high exchange rates and interest rates, we are facing some issues with currency exchange losses while transferring investment funds from Korea to the U.S.,” adding, “Construction costs have increased by about 15% due to exchange losses and inflation. However, we plan to resume construction by March or April and complete the project in about 12 to 14 months.”
He further stated, “It is clear that we will resume the hotel project, but due to factors like staffing issues caused by the large-scale wildfires in LA and changes in the financial market, construction may proceed at a slower pace.”
The Shilla Stay LA project will consist of 200 guest rooms and parking facilities with space for 238 vehicles. The building will include a lobby on the first floor, guest rooms on the second to fifth floors, a rooftop, and various amenities.
SSH America had previously announced plans to complete the construction in three phases—reinforcement work, interior and main construction, and facility installations—with the aim to open the hotel in the first half of 2026.
David Kim, an architect from CORBeL architects, which is in charge of the design, said, “The hotel remodeling work is being carried out by Angeles Contractors, and they are guaranteeing the progress of the construction.” He added, “When construction resumes, we will continue with the basic design, including the 200 guest rooms.”
BY HYOUNGJAE KIM [kim.ian@koreadaily.com]
