Atlas in the news
Sunstone sells 502-key Renaissance hotel near LAX
https://therealdeal.com/la/2020/12/14/sunstone-sells-502-key-renaissance-hotel-near-lax/?utm_source=Sailthru&utm_medium=email&utm_campaign=LA%20Daily%20%7C%2012.15.2020&utm_term=Los%20Angeles%20Daily $93M deal among largest during pandemic Los Angeles / TRD Staff December 14, 2020 10:55 AM Sunstone Hotel Investors sold a 502-room property outside Los Angeles International Airport for $92.5 million, making it one of the largest pandemic-era deals of its kind. The buyer of the Renaissance Los Angeles Airport Hotel at 9620 Airport Boulevard was not disclosed, according to the Los Angeles Business Journal. The property was renovated in 2018. In late October, the tony Viceroy L’Ermitage in Beverly Hills sold for $100 million. L.A. hotels and properties nationwide have been decimated by the coronavirus. Across, the U.S., hotel property owners this year have sold at big discounts. In 2019, the Renaissance hotel generated revenue of $32 million, with an average room rate of $147. Atlas Hospitality Group president Alan Reay called the deal “a good price for the seller,” given how hard the LAX hotel market has been hit, with business and leisure travel all but nonexistent. Marriot International CEO Arne Sorenson said last month that he expects it will take “a vaccine or two” to revive the hospitality sector. He expressed concern that the economy is becoming less connected as the pandemic lingers. The LAX market was seeing steady hotel development before the pandemic….
Extended Stay Properties Are Filling Up in LA
https://labusinessjournal.com/news/2020/dec/07/los-angeles-extended-stay-properties-filling-up/ By Hannah Madans Monday, December 7, 2020 It’s no secret that the hospitality industry has been hit hard by Covid-19, which has forced many hotels to temporarily close and others to permanently shutter. But one type of hospitality property is faring better than others: extended stay hotels and residences. “We’re seeing the hotels that are limited service, which would include extended stay to some degree, are doing pretty well,” said Jay Maddox, principal of capital markets at Avison Young Inc. Occupancy levels were 72% at extended stay properties in the second quarter, according to Alan Reay, president of Atlas Hospitality Group. At traditional hotels, meanwhile, the rate was 42% during that period. Reay said extended stay properties have delivered for owners because they provide fewer services, which keeps operating expenses low. And they’re popular with guests because they tend to have fewer people coming into their rooms, which is preferable during a pandemic. The average length of stay at CGI Strategies’ properties is six to seven months but can range anywhere from 30 days to one year, according to Gidi Cohen, CGI’s founder. Newmark Group Inc.’s Bryan Younge said extended stay hotels are picking up new customers who are staying…
Report: Hotel industry continues to struggle
https://www.sdtranscript.com/common/login/?source=news&sourceid=989613 By Thor Kamban Biberman – San Diego Daily Transcript Thursday, November 12, 2020 While thousands of hotel rooms are in the works in San Diego County, it doesn’t mean they will all decide to open, according to a recent report by the Atlas Hospitality Group. “Many hotels will be delaying their openings,” Atlas Hospitality Group president Alan Reay said, adding that luxury hotels will be the most affected. Reay knows of two Anaheim hotels — a 600-room Westin and a 400-room JW Marriott — that while complete, have decided to keep their doors shuttered. “There are probably a half a dozen projects that are in trouble out there,” he said. New projects continue to be constructed here, however. SD Malkin Properties is developing a four-star-plus resort in Oceanside that will consist of the Mission Pacific Hotel, a 226-room full service hotel, and the Seabird Resort, a 158-room boutique hotel. The hotels will contain multiple restaurants and bars as well as more than 22,000 square feet of interior meeting and function space. The Seabird Resort will integrate the historic Graves House, an iconic local attraction that appeared in the movie Top Gun. Both hotels are expected to open in the…
Pandemic’s impact on hotels could take years to heal
https://www.sdtranscript.com/common/login/?sourceid=989654&source=news By Thor Kamban Biberman – San Diego Daily Transcript Thursday, November 12, 2020 Pfizer may have found at least one vaccine for the coronavirus, but a hospitality executive said COVID-19’s damage to the hotel industry will last for years to come. Within about eight months, the hotel market went from being awash with capital to one where the traditional sources have dried up, which means many planned hotels won’t get started. “We’re seeing a record number of projects that have either been deferred or abandoned,” Atlas Hospitality Group president Alan Reay said. “People are trying to pivot to another product type such as apartments or condos.” He said even if most people are vaccinated next year, it will be 2023 or 2024 before the hotel industry will stabilize. “And it will be 2026 or 2027 before a significant amount construction picks up,” Reay added. “It’s been so devastating to people’s minds who may be wondering what’s going to happen in the next pandemic.” For now, at least, luxury hotels appear to be hurting the most, according to Reay. “Who wants to stay in a 600-room hotel when you only are allowed (except for families) one person per elevator?” he…
Despite Coronavirus Pandemic and Hotel Industry Struggles, Newport Beach Marriott Sold for $200 Million
https://spectrumnews1.com/ca/la-west/business/2020/11/10/eagle-four-partners-newport-beach-marriott BY JOSEPH PIMENTEL NEWPORT BEACH PUBLISHED 9:06 PM ET NOV. 09, 2020 NEWPORT BEACH, Calif. — For years, Eagle Four Partners CEO and partner Kory Kramer would drive by the Newport Beach Marriott Hotel & Spa and thought how much he’d like to own it one day. That day came last week. That day came last week. The 532-room Newport Beach Marriott & Spa sells for $200 million A joint venture of Eagle Four Partners and Lyon Living bought the luxury hotel from Host Hotels and Resorts The sale comes amid the coronavirus pandemic and Newport Beach hotels struggling with low 40% occupancy rate The JV plans to renovate the hotel, including adding more public space, overhauling the guest rooms, and more Despite the global coronavirus pandemic and its effect on the hotel industry, a joint venture between Eagle Four Partners and Lyon Living acquired the 532-room Newport Beach Marriott at 900 Newport Center Drive from Host Hotels and Resorts in an off-market, $200 million deal. “I looked at this hotel every day,” Eagle Four CEO and Partner Kory Kramer said to Spectrum News 1. “I always thought it would be a great opportunity to own. Of course, the seller…
Newport Beach Marriott Sold for $216M, California’s Largest This Year
https://www.connect.media/newport-beach-marriott-sold-for-216m-californias-largest-this-year/ November 9, 2020 Newport Beach-based Eagle Four Partners, LLC and Lyon Living acquired the 532-guestroom Newport Beach Marriott Hotel & Spa in Newport Center from Host Hotels reportedly for $216 million. Atlas Hospitality Group reports it is California’s largest hotel transaction so far this year. A comprehensive renovation of both public space and guestrooms including exterior enhancements are planned for the 10-acre property at 900 Newport Center Dr. Eagle Four Partners’ Kory Kramer says, “As local owners and operators, we are thrilled to be acquiring the Newport Beach Marriott Hotel & Spa and adding it to our portfolio of iconic hospitality and lifestyle residential assets. Being an integral part of the community fabric of Newport Beach, we are dedicated to a transformative renovation in 2021 bringing the hotel to a new level of guest experience and service befitting its location in the heart of Newport Beach.” CBRE Hotels’ Robert J. Webster, Michael DiPrima and Diana Simpson advised seller. The CBRE Hotels Debt & Structured Finance team of Mark K. Owens and Bill Grice secured $170 million in acquisition and renovation financing for the buyer. atlashospitalitygroup hospitalityindustry hotelnews
Host Sale of Orange County Hotel Marks California’s Biggest Hospitality Trade of 2020
https://product.costar.com/home/news/393384948 A $216 Million Purchase Is Among Rare Large Deals in Pandemic-Wracked Year By Lou Hirsh CoStar News November 5, 2020 | 3:27 P.M. Host Hotels & Resorts sold its 532-room Newport Beach Marriott Hotel & Spa in California’s coastal Orange County for $216 million, the state’s biggest hotel deal by total price of 2020 that analysts say could have been higher if the pandemic wasn’t hammering the hospitality industry. Host Hotels, among the nation’s largest hotel-focused real estate investment trusts, confirmed the off-market sale of the property at 900 Newport Center Drive in a statement on its quarterly financial results. The company capitalized on “opportunistic sales at attractive prices that enhance our liquidity and reduce our near-term capital spending requirements,” CEO James Risoleo told investors in a statement, noting the sale took place after the end of the Bethesda, Maryland-based company’s third quarter ended Sept. 30. The deal is California’s biggest hotel transaction by total price this year, topping January’s $117.5 million sale of the 355-room Hilton San Jose, according to brokerage and research firm Atlas Hospitality Group. Even at the high price, the deal reflects how the struggles of the hospitality industry in the pandemic have dramatically decreased hotel sales…
