Atlas in the news

Bisnow 02/20/20 Buyers Continue to Show Strong Interest in California Hotel Investments By Joseph Pimental https://www.bisnow.com/orange-county/news/hotel/buyers-continue-to-show-strong-interest-in-california-hotel-investments-103071 Nearly 300 hotels worth more than a combined $6B traded in the Golden State last year, a 6% increase in transactions and a 7.4% jump in total dollar volume from the previous year, according to a new report. Atlas Hospitality Group’s California Hotel Sales Survey 2019 year-end report released Wednesday found that 157 hotels sold for $3.4B overall in Southern California last year. Northern California had 140 hotels change hands in deals totaling $2.6B. “California saw a rebound in the number of individual transactions in 2019,” according to the report. “Buyers continued to show strong interest in Golden State hotel investments.” In a follow up email to Bisnow, Atlas Hospitality President Alan Reay said several factors contributed to the increase in sales transactions and the rise in total dollar volume in the state. Record low-interest rates, foreign buyers, and alternative-use buyers and investors converting hotels to low-income housing were among several factors that led to the increase in hotel acquisitions in the state last year, Reay said. “We have seen deals being financed on the CMBS side at sub 4% rates, when typically the…

Orange County Business Journal 02/19/20 Hotel Sales Up By Katie Murar https://www.ocbj.com/news/2020/feb/19/hotel-sales/ Eighteen hotels sold in Orange County last year, with the $477 million deal for the 400-room Monarch Beach Resort leading transactions in the county and state, a report by Atlas Hospitality Group said. On a per-room basis, it was the second highest sale in California at $1.2 million apiece. The largest hotel sold in OC last year was the 489‐room Irvine Marriott, which traded for $170 million. The 18 deals compare with 16 in 2018, while dollar volume surged 188%. Statewide, hotel sales increased 6% to 297 deals, with dollar volume up 7.4%.

Los Angeles Business Journal 02/07/20 Ready Rooms: The Top Hotel Openings of 2019 Hotel openings, construction continue to climb in LA County By Hannah Madans https://labusinessjournal.com/news/2020/feb/07/top-hotel-openings-la-county-2019/   The top hotel openings in L.A. County in 2019 included the Santa Monica Proper Hotel. Last year was a big one for both hotel openings and hotel construction in Los Angeles County. L.A. ended 2019 with 7,030 rooms under construction, the most of any county in the state. In all, nine hotels opened in the county last year, adding a total of 1,167 new rooms to the county. While that’s a strong number, it’s a 24% decrease from 2018, which saw 11 new hotels with 1,526 rooms open across the county. Statewide, there were 92 hotel openings last year, for a total of 11,795 rooms. According to data from Atlas Hospitality Group, 212 hotels with 28,102 rooms were under construction. The numbers do not include most repositionings, renovations or brand changes. “We are seeing a big uptick in new supply that maybe hasn’t been added to the inventory in the last seven or eight years.” Atlas Hospitality President Alan Reay said. Reay said the availability of construction financing, record revenue and profits for…

Los Angeles Business Journal 02/07/20 Arbor Buys Hotel Portfolio By Hannah Madans https://labusinessjournal.com/news/2020/feb/07/arbor-buys-hotel-portfolio Arbor Lodging Partners and GFH Financial Group have acquired a 12-hotel portfolio, including multiple Los Angeles properties. Financial terms of the transaction were not disclosed. The joint venture’s acquisition included the Hilton Garden Inn and the SpringHill Suites in Arcadia. Both properties were previously owned by BRE Select Hotels Corp., according to CoStar Group Inc. records. The recently acquired hotels will be managed by Arbor Lodging Partners’ affiliate, Arbor Lodging Management. “We are thrilled to have added 12 diverse and unique properties with industry-leading franchise affiliations to our portfolio in several key markets,” Vamsi Bonthala, chief executive of Arbor Lodging Partners, said in a statement. “Consistent with our strategic investment plans, we are pleased to invest in high-performing hotel markets while concurrently continuing our own growth as an influential hotel investment and management firm.” Arbor Lodging Partners plans to renovate each property. Sheenal Patel, chief executive of Arbor Lodging Management, said in a statement that he would work with the properties to create “memorable and engaging experiences for guests.” Activity in the hotel sector for 2020 shows no signs of slowing after a busy 2019. Redwood City-based…

Bisnow 01/31/20 Motels Could Be the Right Fit for Opportunity Zones By Joseph Pimentel https://www.bisnow.com/los-angeles/news/hotel/motels-could-be-the-right-fit-for-opportunity-zones-102763 Budget and value hotels are poised to see a boost in investments via the opportunity zones program, experts told Bisnow last week. G6 Hospitality Vice President of Franchise Development Jeff Stephenson said that in the past year, he has already heard from more than two dozen investors and current motel owners exploring ways to take advantage of the federal tax program. G6 Hospitality oversees more than 1,400 Motel 6 and Studio 6 extended-stay brands in the U.S. and Canada. Because many motels and economy hotels are already in areas in lower-income census tracts, and most motel owners are long-term investors, the investment makes sense, Stephenson said. “There is a great opportunity in some of these opportunity zones,” Stephenson told Bisnow on the floor at the Americas Lodging Investment Summit at the JW Marriott LA Live in downtown Los Angeles. “We can go in and you don’t have to bring the customers in from miles away. They are already here.” Passed as part of the Tax Cuts and Jobs Act of 2017, the opportunity zone program allows an investor to roll over capital gains into a…

The Mercury News 01/28/20 Atari Plans to Launch Hotels That Will Use Its Brand Name Video game icon Atari eyes hotels in San Jose, San Francisco By George Avalos SAN JOSE — Atari is planning a series of hotels that will sport the name of the videogame icon, with hotel sites slated to include San Jose. The gaming trailblazer vows that the hotels will meld its legendary brand with a unique destination that has a videogame theme. Paris-based Atari is teaming up with developer True North Group and branding expert GSD Group to develop and launch the hotel chain. “We are thrilled to partner with GSD Group and True North Studio to build the first-ever Atari branded hotels across the United States,” said Fred Chesnais, Atari’s chief executive officer. “Together we’ll build a space that will be much more than just a place to stay.” The hotels will feature immersive gaming and entertainment experiences for all ages and game expertise, including the latest offerings in virtual reality and augmented reality, Atari said. “When creating this brand-new hotel concept, we knew that Atari would be the perfect way to give guests the ‘nostalgic and retro meets modern’ look and feel we…

Orange County Business Journal 01/27/20 Anaheim’s Sheraton Park Sells for $51M HOSPITALITY: LATEST CHANGE TO CONVENTION AREA By Katie Murar https://www.ocbj.com/news/2020/jan/27/anaheims-sheraton-park-sells-51m   One of Orange County’s largest hotels, located on the Anaheim Convention Center campus, is set for a facelift after a recent sale. The deal and upcoming work to the property, along with other luxury offerings being built nearby, marks another sign of significant upgrades and investments to the epicenter of OC’s meetings and conventions business. The 486-room Sheraton Park Hotel at Anaheim Resort sold for a reported $51 million; it’s No. 4 among the largest hotel deals in OC over the past year by total price. The new owner is Taconic Capital Advisors LP, a New York-based institutional investor. The price works out to $105,000 per room—low when set against recent comps, according to Alan Reay, president of Irvine-based hotel broker and consultant Atlas Hospitality Group. Nearby hotels along Harbor Boulevard have sold for $340,000 per room in the past year. 41% Markup Sources indicate the affordable acquisition is largely due to a ground lease with the city of Anaheim that expires in 2068, which currently runs about $1.5 million a year. The Sheraton’s beleaguered backstory also plays…

HotelNewsNow 01/24/20 After Record 2019, California Hotel Openings Could Slow The latest California hotel development survey showed a record-number of openings, but increasing construction costs, a complicated entitlement process and supply concerns cast some doubt on more record-setting years in the near future. By Bryan Wroten http://www.hotelnewsnow.com/Articles/299975/After-record-2019-California-hotel-openings-could-slow REPORT FROM THE U.S.—With a record 11,795 hotel rooms opened in 2019, there’s no doubt California hosts some of the most sought-after markets in the country. However, as the cycle continues on and new rooms keep coming online, concerns about market saturation grow. The “California Hotel Development Survey 2019 Year-End” from Atlas Hospitality reports new rooms openings last year surpassed 2017’s record of 10,793 rooms. Along with the 92 hotels that opened in 2019, the state also had 212 hotels with 28,102 rooms under construction and another 1,199 hotels with 159,711 reported rooms in various stages of planning, representing a 7% year-over-year room count increase. Many of California’s markets continue to see revenue per available room above the national average, Atlas President Alan Reay said. That continues to draw in hotel owners and developers hoping to take advantage of the demand. However, the U.S. hotel industry is 10 years into its recovery, and…

The Real Deal 01/22/20 Around LAX, Office-to-Hotel Conversions Are Catching On By Tina Daunt https://therealdeal.com/la/2020/01/22/around-lax-office-to-hotel-conversions-are-catching-on/ A developer wants to convert a Westchester office building into a 356-key hotel, hoping to get in on the fast-developing area around Los Angeles International Airport. Miracle Mile Holdings LLC has filed an application with city planning to repurpose the 455,000-square-foot building at 5240-5300 West Century Boulevard. Records show the seven-story, glass property was acquired for $11 million in 2001. On Tuesday, Shuhab Ahmed — acting on behalf of Miracle Mile — filed a permit for the yet-unbranded hotel. The plan includes 6,000 square feet of ground-floor commercial space. A representative for Miracle Mile declined to comment. The building now houses a mix of commercial businesses. It had previously been marketed as a possible corporate headquarters. But with property owners struggling to lease empty office space in the area, the incentive to convert structures into hotels is becoming more attractive, said Alan Reay, founder of brokerage firm Atlas Hospitality Group. “This is a big trend along Century Boulevard,” Reay said. “We’re seeing this happening with a lot of properties where the office rental market has been stagnant, particularly around LAX.” He added it was less…

Bisnow 01/21/20 Disneyland’s Galaxy’s Edge Is Completed. Hotels Are Hoping This Time, The Crowds Will Come. By Joseph Pimentel https://www.bisnow.com/orange-county/news/hotel/with-disneylands-galaxys-edge-officially-completed-will-the-crowds-come-two-hotels-are-banking-on-it-102561 Seven months after Disneyland opened a Star Wars-themed territory, its sister area Galaxy’s Edge is now finally complete. As part of that effort, The Walt Disney Co. on Friday unveiled its much-hyped Rise of the Resistance attraction, an immersive experience that places riders into the Star Wars universe. This past weekend, fans were lining up as early as 4 a.m. to get into the park to experience the attraction. Nearby hoteliers watched the area’s popularity with interest: If the massive crowd size at Disneyland since its opening is a sign of things to come, hotels bordering the park are primed for an influx of new customers. Two new hotels, a JW Marriott and a Westin Anaheim, are slated to open in the coming months. “The whole land was missing its heart,” Themeparkinsider.com founder and Editor Robert Niles said. “This is the final piece that completes it.” Disneyland: Galaxy’s Edge is a 14-acre themed land that was the single largest expansion built in Disneyland since it opened in 1955. It transports visitors into a village settlement on the planet of Batuu…

Hotel Management 01/13/20 California Sets Record for Number of Hotel Rooms Opened in 2019 By Alicia Hoisington https://www.hotelmanagement.net/development/california-sets-record-for-number-hotel-rooms-opened-2019 In 2019, California set a new record for the number of new hotel rooms opened, according to Atlas Hospitality Group’s “California Hotel Development Survey 2019 Year-End.” During the year, the state opened 11,795 rooms in 92 hotels. As of year-end 2019, California had 212 hotels with 28,102 rooms under construction, according to the report. There were 1,199 hotels with 159,711 reported rooms in various stages of planning, which represents a 7 percent room-count increase over 2018. But, is there a concern of oversupply in the state? According to the report, California has been able to absorb the new room supply thus far. Researchers said that’s one reason the state is able to garner interest from domestic and global investors. Market Story Drilling into more specific markets, Los Angeles County holds the most rooms under construction (7,030 rooms in 47 hotels), according to the data. During the year, the county opened nine new hotels with 1,167 rooms, a 24-percent room count decrease from the 11 hotels with 1,526 rooms in 2018. The 271-room Santa Monica Proper Hotel was the largest property in the…

The San Diego Diego Union-Tribune 01/14/20 San Diego Has More Than 1,600 New Hotel Rooms San Diego County leads Los Angeles and Orange counties in the number of hotel rooms that debuted in 2019 By Lori Weisberg https://www.sandiegouniontribune.com/business/tourism/story/2020-01-14/san-diego-has-more-than-1-600-new-hotel-rooms-sycuan-leads-the-pack San Diego County’s hotel industry continues to show robust growth, with a total of 1,668 new rooms opening in 2019 — a 36 percent jump compared with the previous year, reports Orange County-based Atlas Hospitality group, which each year tracks development trends in the hospitality sector. The 2019 hotel openings are second only to San Diego’s record high of 2,402 new rooms in 2003, when a 750-room tower was added to the bayfront Manchester Grand Hyatt. The largest local hotel opening last year was the $260 million Sycuan hotel resort, which included a 12-story, 302-room hotel. Following close behind was the 16-story, 246-room Carte hotel in Little Italy, which opened in September and cost $89 million to develop. Among California counties, San Diego came in second, just behind Santa Clara, in terms of the number of hotel room openings in 2019. Los Angeles and Orange counties were further behind, with just 1,167 and 632 rooms, respectively, that debuted last year. In the…