Atlas in the news
California Hotel Sales Increased in Second Half of 2019
HotelNewsNow 03/06/20 California Hotel Sales Increased in Second Half of 2019 Though the year was off to a slow start, hotel owners showed more interest in making deals in California thanks to continuing favorable conditions. By Bryan Wroten http://www.hotelnewsnow.com/Articles/300643/California-hotel-sales-increased-in-second-half-of-2019 REPORT FROM THE U.S.—California hotel sales increased during the second half of 2019 after a forecasted economic recession never materialized and demand continued to grow in the state. Atlas Hospitality Group’s California Hotel Sales Survey 2019 Year-End reports that while the number of sales in 2019 fell below the running five-year average of 331, its total of 297 sales was a 6% increase over 2018. The median sales price per room dipped by 2.6% year over year, but it was still the second-highest median price per room on record. Total dollar volume grew 7.4% year over year, coming in at the fourth highest on record. Many people were forecasting a slowdown in the economy or even a recession, so many people took a wait-and-see attitude in the first half of the year to see what would happen with the market, Atlas Hospitality Group President Alan Reay said. However, revenue per available room grew in California, and it grew at a higher…
Total Dollar Volume for California Hotel Sales Grows in 2019
Hotel Management 02/25/20 Total Dollar Volume for California Hotel Sales Grows in 2019 By Alicia Hoisington https://www.hotelmanagement.net/transactions/total-dollar-volume-for-california-hotel-sales-grows-2019 Total dollar volume for hotel sales in California as of year-end 2019 was up 7.4 percent compared to 2018, according to Atlas Hospitality Group’s “California Hotel Sales Survey: 2019 Year-End.” That was also the fourth-highest growth on record. During the year, 297 hotels in the state changed hands, a 6 percent increase over 2018 but still below the running five-year average of 331 deals, according to the report. Meanwhile, the median sales price per room dropped 2.6 percent from the record set in 2018. However, it was still the second highest median price per room since data has been recorded, and the figure has increased more than 120 percent over the past 10 years. Additionally, a new record high sales price per room was set with the sale of the Montage Hotel Beverly Hills at just under $2.1 million per room. This was 21.3 percent higher than the previous record set by the Malibu Beach Inn in 2015. Following are some notable figures and sales from the report. Growth Counties Orange County experienced the highest jump in total dollar volume growth, rising 188…
Kamla Hotels Sells Anaheim Hotel for $13.7 Million
Kamla Hotels Sells Anaheim Hotel for $13.7 Million Investor Buys 94 Room Hospitality Property in Orange County By Jason Kuyper https://product.costar.com/home/news/shared/1383771004 Tri-lin Holdings LLC acquired the 94-room Capri Suites Anaheim Convention Center hospitality building at 2141 S. Harbor Blvd. in Anaheim, California, for $13.65 million, or about $145,000 per door, from Kamla Hotels. The four-story, 47,014-square-foot hotel property, formerly a Ramada by Wyndham, was constructed in 1962 in Orange County. Robert Feist with Atlas Hospitality Group represented the seller. Oliver Shah, also with Atlas, represented the buyer.
Value of San Diego Hotels Sold in 2019 Surges More Than 80 Percent
The San Diego Union-Tribune 02/24/20 Value of San Diego Hotels Sold in 2019 Surges More Than 80 Percent Hyatt Regency hotels on Mission Bay and at the Aventine were the priciest sales last year By Lori Weisberg https://www.sandiegouniontribune.com/business/tourism/story/2020-02-24/value-of-san-diego-hotels-sold-in-2019-surges-more-than-80-percent San Diego’s hotel real estate market, defying predictions of a slowdown a year ago, remains strong following a more than 80 percent increase last year in the total dollar volume of sales transactions. In all, 20 hotels, accounting for more than 4,100 rooms, changed hands in 2019, according to a year-end report prepared by Orange County-based Atlas Hospitality Group, which tracks the California hotel market. While there were seven fewer transactions last year than in 2018, the total number of rooms encompassed by the sales was double the number of a year earlier. Leading the sales last year in San Diego, by total number of rooms, were the 1,053-room Sheraton San Diego Hotel & Marina on Harbor Island, the 438-room Hyatt Regency Mission Bay, and the 417-room Hyatt Regency La Jolla at Aventine. Even with the relatively robust sales volume, it was still far off the last decade’s peak, in 2011, when more than 40 hotels sold for a collective value of…
Buyers Continue to Show Strong Interest in California Hotel Investments
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…
Hotel Sales Up
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%.
Ready Rooms: The Top Hotel Openings of 2019
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…
Arbor Buys Hotel Portfolio
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…
Motels Could Be the Right Fit for Opportunity Zones
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…
Atari Plans to Launch Hotels That Will Use Its Brand Name
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…
Anaheim’s Sheraton Park Sells for $51M
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…
After Record 2019, California Hotel Openings Could Slow
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…
