Atlas in the news

https://product.costar.com/home/news/shared/142961870?utm_source=newsletter&utm_medium=email&utm_campaign=personalized&utm_content=p4 Loan Distress for Some Owners Could Create Rare Bargains for Future Buyers By Lou Hirsh CoStar News September 3, 2020 | 6:25 P.M. California hotel property sales are on track to have their lowest year ever, following a record decline in sales as the coronavirus pandemic stalled tourism and real estate activity. The dollar volume of hotel sales in the state dropped by an unprecedented level of more than 80% year-over-year in the pandemic period of April to June, according to brokerage and research firm Atlas Hospitality Group, which primarily tracks California hotel property trends. “With a large number of hotels closed down and occupancies and room rates at record lows, no one has ever experienced a market like this before,” reads an Atlas report. The sales decline in the early months of the pandemic contributed to pushing total sales dollar volume for the first half of the year down more than 53% from a year earlier, according to Atlas. That’s the steepest decline Atlas has reported for the first six months of the year since 2009 when the number of sales fell 51% year-over-year and the dollar volume dropped 80.3% during the last economic recession. The financial challenges facing…

San Diego Daily Transcript Wednesday, September 2, 2020 By Thor Kamban Biberman The California hotel sales market has suffered the steepest decline in sales on record due to the COVID-19 pandemic, according to Atlas Hospitality Group, and it may not be getting better anytime soon. The number of San Diego County hotel transactions in the first half of this year was 10, one more than a year ago, but that doesn’t begin to tell the whole story. San Diego’s dollar sales volume in the first half of 2020 plummeted 69.8 percent year-over-year to $99.39 million, according to Atlas. In normal years, there are often single hotel sales that exceed the $100 million figure. From April 1-June 30, San Diego’s individual sales declined 80 percent year-over-year, total dollar volume of sales dropped 97 percent, and the most expensive transaction was the $27.3 million sale of the 183-room Kimpton Hotel Palomar, Atlas reported. There were just 577 rooms involved in San Diego County hotel sales in the first half of this year compared with 1,369 in 2019. That represented a 57.6 percent decline. The average price per room declined 29.2 percent year-over-year from $228,363 in the first half of last year to…

https://www.hotelnewsnow.com/articles/304224/Pressures-of-pandemic-slow-California-hotel-pipeline 01 SEPTEMBER 2020 8:04 AM Projects continue to enter and remain in California’s hotel construction pipeline, but the reality of the coronavirus pandemic is that many projects will never be completed. By  Bryan Wroten bwroten@hotelnewsnow.com @HNN_Bryan REPORT FROM THE U.S.—California hotel development slowed over the first six months of 2020, but the full impact of the coronavirus pandemic on new hotel projects likely won’t be realized for years. The latest mid-year hotel development survey from Atlas Hospitality Group found a significant decrease in construction and openings during the first half of 2020 compared to the record-setting pace of the first part of 2019. The number of hotels under construction fell from 234 in the first half of 2019 to 194 this year, a 17.1% decrease. While the number of hotels opening so far was down by just one (35 compared to 36), the number of rooms opening was down by 22.5% (from 4,515 to 3,500). Conversely, new projects in planning grew by 9% compared to the first half of 2019, with new rooms in planning growing by 5.7%. However, those growth figures don’t tell a complete story. California still has a healthy pipeline of hotels opening in the second…

https://labusinessjournal.com/news/2020/aug/31/covid-19-taking-toll-plans-new-hotels/ By Hannah Madans Monday, August 31, 2020 Covid-19 has had a devastating impact on the hotel industry, and that pain has extended to the planning and construction of new hotels. So far this year in California, 35 hotels with a total of 3,500 new rooms have opened in the state, and 194 more hotels are under construction, according to a new Atlas Hospitality Group report. In Los Angeles, however, only one hotel opened in the first half of the year, the 24-room Prospect Hotel in Hollywood. Atlas Hospitality President Alan Reay said many more hotels have been completed but postponed their opening due to Covid-19. In all, the number of hotel rooms planned for California this year has increased 9%. L.A. has 49 hotels with 7,650 rooms under construction and leads the state in number of hotels and rooms in planning. However, the number of hotels under construction statewide decreased 17% from 2019. “On the development side, it’s such a long lag time that we are not really seeing the effects (of the pandemic) right now,” Reay said. But, he added, not all hotels that are planned or under construction will actually be finished, and if the buildings are completed,…

https://napavalleyregister.com/business/napa-marriott-to-be-sold-for-100-million/article_6c585b9a-03f6-56d0-ad3a-0afd034bf8f1.html Jennifer Huffman   Aug 28, 2020 The Marriott Napa Valley Hotel & Spa is soon to have a new owner. Xenia Hotels & Resorts, the current owner of the property, announced it has entered into an agreement to sell the 275-room Marriott for $100 million. The deal should close “before the end of the third quarter,” said a Xenia news release. “The transaction is not contingent upon financing and the buyer has a $5 million deposit at-risk.” A buyer was not named. Alan X. Reay, president of Atlas Hospitality Group in Irvine, said he thinks the sale is an example of how publicly-traded companies are now selling such properties to try and reduce their debt levels. Before COVID-19, “this hotel would have sold for around $147 million,” said Reay. The $100 million price — or a 32% discount, “is in line with other transactions we are seeing selling,” during the COVID-19 pandemic, he said. Might other Napa hotels also change hands in the coming months? Probably not, said Reay. “Most owners are not looking to sell in this market as they do not want to take such a big hit to values, so we do not expect to see any…

https://ftnnews.com/accommodation/40149-california-s-hotel-construction-pipeline-slows-in-2020 By: Özgür Töre  August 26, 2020 California’s new hotel construction has slowed somewhat from the record-breaking pace set in the first half of 2019, according to the 2020 Mid-Year California Hotel Development Survey. Atlas Hospitality, specialized in the sale of California hotels, released the results of the survey that reveals the total number of upcoming hotels in the California state. The number of hotels under construction decreased by 17.1% (from 234 to 194), and the number of new rooms under construction declined by 19.9% (from 32,424 to 26,418). Thirty-five hotels opened in the first half of 2020, down just one from the thirty-six hotels in 2019, but with 22.5% fewer rooms (4,515 vs 3,500), according to the latest hotel development survey by Atlas Hospitality Group. In planning, the number of new hotels and rooms increased by 9.0% and 5.7%, respectively. There were 1,246 California hotels in planning midway through 2020, versus 1,143 last year. Rooms in planning went from 155,782 to 164,676. SOUTHERN CALIFORNIA LOS ANGELES COUNTY Only one hotel opened in Los Angeles County in the first half of 2020, the 24-room Prospect Hotel. Los Angeles County leads California with 49 hotels and 7,650 total rooms under construction….

https://product.costar.com/home/news/1029860132 Some Developers Could Pivot Project to Residential Uses By Lou Hirsh CoStar News August 20, 2020 | 4:14 P.M. Tough times for the travel industry during the coronavirus pandemic spurred a 17% decline in hotel construction in California, coming off a record-setting year for the state that traditionally leads the nation for hotel room demand and development. The number of California hotels under construction dropped to 194 in the first six months of 2020 from 234 in the same period last year, as total rooms under construction declined nearly 20% to 26,418, according to hotel brokerage and research firm Atlas Hospitality Group. “We are forecasting that the vast majority of hotel projects in planning will simply not get built,” said Alan Reay, president of brokerage and research firm Atlas Hospitality Group in a new midyear development report. “Developers are already looking at other uses, namely residential.” The pandemic has created significant financial uncertainty that could affect developer appetites to build the new hotels that are in the state’s long-term pipeline, at a time when many current hotels are struggling to reopen and get customers to return, especially in coastal regions including Los Angeles, San Diego and Orange County. California has historically been the state…

Image courtesy of Delawie A rendering of SD Malkin’s Destination Hotel Resort (also known as the Oceanside Beach Resort) in Oceanside. Thursday, August 20, 2020 By Thor Kamban Biberman Newly completed hotels are opening into a pandemic-fueled recession, while those that were planning to begin construction may be thinking about building in another asset class entirely. Atlas Hospitality Group president Alan Reay, whose firm just completed a mid-year hotel construction survey, said numerous new hotels have postponed their openings, while many hotels remain closed. “Over 40 percent of hotels in San Francisco are closed,” Reay said, adding that Anaheim is another city that has been particularly hit hard by the pandemic and hotel closures. “Some projects are being abandoned if they weren’t already under construction.” New hotel construction in California has tempered quickly from the record-setting pace set in the first half of 2019. The number of hotels under construction decreased 17.1 percent (from 234 to 194), and the number of new rooms under construction declined by 19.9 percent, according to Atlas Hospitality. Thirty-five hotels opened in the first half of 2020, just one less than 2019, but with 22.5 percent fewer rooms. The number of new hotels and rooms…

Home-Sharing Provider’s Funding Could Help It in Pandemic, Challenge Hospitality Sector By Katie Burke CoStar News August 19, 2020 | 4:32 P.M. Home-sharing company Airbnb officially filed its intention to embark on an initial public offering, catching the hotel industry off guard at a point when it is struggling to recover from the pandemic. The San Francisco-based firm, credited for popularizing the modern short-term home rental industry, told CoStar News it filed the initial paperwork to go public with the Securities and Exchange Commission Wednesday. Airbnb did not disclose the number of available shares or the price range at which they would be offered. The announcement of the filing did not disclose any financial results to give potential investors any indication of how the company is performing in the pandemic. The move could position Airbnb to emerge from the pandemic with financial momentum, potentially setting the stage for it to snap up more market share in the hospitality industry just when hotel properties have reported their biggest, most dramatic drop in modern history. It comes in the same week as the S&P 500 has reached a record high. As more travelers begin to consider venturing away again, Airbnb has been recommending…