Atlas in the news
Around LAX, Office-to-Hotel Conversions Are Catching On
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…
Disneyland’s Galaxy’s Edge Is Completed. Hotels Are Hoping This Time, The Crowds Will Come.
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…
California Sets Record for Number of Hotel Rooms Opened in 2019
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…
San Diego Has More Than 1,600 New Hotel Rooms
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…
Hilton Hotel in Downtown San Jose Is Sold for More Than $117 Million
Bisnow 01/13/20 Hilton Hotel in Downtown San Jose Is Sold for More Than $117 Million Hotel tower next to downtown San Jose convention center changes hands By George Avalos Hilton Hotel in downtown San Jose is sold for more than $117 million SAN JOSE — The iconic Hilton Hotel in downtown San Jose has been sold, real estate brokers said Monday. The 18-story hotel tower was sold for $117.55 million, according to JLL, a commercial real estate firm that arranged the sale of the prominent lodging facility. “Hilton San Jose is proximate to a plethora of Fortune 1000 corporations, including some of the most recognizable names in technology today,” said John Strauss, a JLL senior managing director. The hotel is directly connected via a sky bridge to the San Jose McEnery Convention Center in the downtown of the Bay Area’s largest city. JLL noted that the transaction has occurred at the same time that a major development boom has begun to sprout in downtown San Jose. “San Jose is in the midst of an urban renaissance with millions of square feet of new office space in the pipeline,” Strauss said. The hotel includes 18,000 square feet of meeting and event…
California Sets New Record with Hotel Openings in 2019
Bisnow 01/13/20 California Sets New Record with Hotel Openings in 2019 By Joseph Pimentel https://www.bisnow.com/orange-county/news/hotel/report-california-sets-record-for-the-number-of-hotel-openings-in-2019-102506 California last year set a state record for the number of hotel openings in a single year, a new report says. Atlas Hospitality Group, an Orange County-based brokerage firm specializing in the hotel industry, reported that the Golden State saw 92 hotels open, totaling 11,795 rooms in 2019. The last time the state had a similar boom was in 2017, when 66 hotels opened, totaling 10,794 rooms, according to Atlas Hospitality President Alan Reay. “California has one of the strongest economies, not only in the U.S. but the world,” Reay said in an interview with Bisnow. “Investors, both domestic and international, all see the state as a great long-term investment. Corporate travel coupled with the huge tourism business gives California a very diverse business base.” The Southern California region, which includes Los Angeles, Orange and San Diego counties and the Inland Empire led the way with 46 hotels opening totaling 4,534 rooms. In 2019, San Diego saw 10 hotels open with 1,668 rooms, a 36% increase in room numbers year-over-year. Los Angeles County had nine new hotels with 1,167 total rooms open in 2019, a…
Silicon Valley Tech Boom Creates Surge in Hotel Development
CoStar 01/10/20 Silicon Valley Tech Boom Creates Surge in Hotel Development Santa Clara County Leads California for 2019 Room Openings, With More on the Way By Lou Hirsh Development https://www.costar.com/article/1838448630/silicon-valley-tech-boom-creates-surge-in-hotel-development California’s Santa Clara County led the state in construction of new hotel rooms in 2019, thanks largely to business travel demand fueled by Silicon Valley’s booming technology industry, according to a new study. Brokerage and research firm Atlas Hospitality Group found that in a year that set a state record for new hotel rooms opened, at 11,795, the heart of Silicon Valley led all regions with 1,919 rooms opened at 12 properties. “It is one of the most desirable markets in California for hotel developers, based almost 100% on the strength of the tech market,” Atlas President Alan Reay told CoStar News, adding the general trend is likely to continue well into 2020 and beyond. Santa Clara County is home to San Jose, the nation’s 10th-most populous city, and several suburbs hosting fast-expanding operations of the world’s largest technology companies, including Google, Facebook, Apple and Netflix. It is the core of a larger region of Northern California known as Silicon Valley, among the world’s largest hubs for technology companies and…
Study: 2019 a Record Year for Hotel Development
San Fernando Business Journal 01/01/20 Study: 2019 a Record Year for Hotel Development By Michael Aushenker http://sfvbj.com/news/2020/jan/10/study-2019-record-year-hotel-development/ The Atlas Hospitality Group 2019 Year-End California Hotel Development Survey found last year set a new record for the number of California hotel rooms opened. Some 92 new hotels opened in 2019 with 11,795 rooms and another 212 hotels under construction. In the San Fernando Valley, most of the activity is around Warner Center. Woodland Hills has five hotels in the planning stage – including two by Westfield – and a Home 2Suites under construction at 5957 N. Variel Ave. In Camarillo, there is one hotel in the planning stage, a Hotel2Suites, and another Embassy Suites, both on the Mian Cos.’ property at Las Posas Road and 101 freeway, under construction. Sherman Oaks has two hotels in the planning stages while Thousand Oaks has another of pair in development. In the Tri-Cities, Burbank has seven hotels in the planning stages and one – the AC Hotel Burbank – under construction. Glendale has a total of eight in the planning stage. Doran Hotel has two hospitality sites in the planning stages in Glendale. The Santa Clarita Valley has four hotels in the planning…
Orange County Hotel Development Strong
Orange County Business Journal 01/09/20 Hotel Development Strong By Katie Murar https://www.ocbj.com/news/2020/jan/09/hotel-development-strong/ Three hotels opened in Orange County last year, one of which was the largest to open in the state in 2019, according to a year-end survey by Irvine-based Atlas Hospitality Group. The 352-room Cambria Hotel Anaheim Resort Area opened last summer. The other openings were a 178-room and 102-room Hampton Inn & Suites in Anaheim and Buena Park, respectively. The 632 new rooms in the county mark a 42% jump from the year prior. There are currently 17 hotels with 3,166 rooms under construction, flat growth year-over-year, the largest of which is the 613-room Westin Anaheim Resort, a $250 million project led by Wincome Group. There are an additional 69 hotels with 11,048 rooms in planning, up 7% from 2018. Statewide, hotel openings hit a new record in 2019, with 34 properties delivering 4,773 rooms. “Despite the increased cost of construction, California hotel developers continue to build, and lenders continue to provide financing,” the report said. “This is driven in large part by the premium owners can charge for new rooms versus older competitors, along with the ultimate premium they can drive on sales/appraised value.”
High Prices, Seller’s Market for OC Hotels
Orange County Business Journal 12/23/19 High Prices, Seller’s Market for OC Hotels By Katie Murar https://www.ocbj.com/news/2019/dec/23/2020-preview-hospitality-tourism California hotel sales hit record highs in 2019, with Orange County experiencing its priciest hotel sale to date. The Monarch Beach Resort traded for a record price of $497 million, or $1.2 million per room. That per-room price trails only the 2015 sale of the Montage Laguna Beach at $1.4 million per room among reported local deals. Through the first half of 2019, California hotel sales hit a record median price per room at $130,025, which is up 13% from the year-ago period, and up 146% over the last 10 years, according to Atlas Hospitality Group. Will 2020 continue that momentum? National data indicates that hotel supply is growing, as are room revenues, but at a slower clip. “California continues to post some very impressive sales numbers. This has many experts wondering when the market will slow down,” said Alan Reay, president of Atlas Hospitality Group. “As long as the economy remains strong and interest rates remain low, prices should continue to go up. However, if demand slows, the supply of new hotel rooms coming online could start to impact price appreciation.” It’s a…
Big Beverly Hills Hotel Deal Could Be Sign of More to Come in 2020
CoStar 12/26/19 Big Beverly Hills Hotel Deal Could Be Sign of More to Come in 2020 London’s Maybourne Buys California Property for Price Topping $2 Million per Room By Lou Hirsh https://product.costar.com/home/news/shared/1290861420 More big trophy hotel deals could be ahead in 2020, after London-based Maybourne Hotel Group acquired Montage Beverly Hills near Los Angeles for $415 million. It’s the highest price per room ever paid for a hotel in California at more than $2 million, according to brokerage Atlas Hospitality Group. The 201-key Montage, located at 225 N. Canon Drive in a part of Beverly Hills best known for the nearby Rodeo Drive luxury retail corridor, is Maybourne’s first U.S. acquisition. The seller was Redwood City, California-based Ohana Real Estate Investors, led by Principal Pierre Omidyar, the billionaire founder of auction site eBay. Atlas President Alan Reay, whose brokerage and research firm was not directly involved in the transaction, said the deal is a very good indicator of how trophy assets are valued, especially by overseas investors, for their location, revenue generation and overall luxury quality. “It says a lot about how international investors view the U.S. in terms of safety and for investment returns over the long term,” Reay…
Montage Beverly Hills Bought for $415 Million, or $2.1 Million per Room
Los Angeles Daily News 12/27/19 Montage Beverly Hills bought for $415 million, or $2.1 million per room Busy year-end for the folks at Ohana Real Estate Investors. By Jonathan Lansner Montage Beverly Hills bought for $415 million, or $2.1 million per room Let’s just say it’s been a busy year-end for the folks at Ohana Real Estate Investors, as the hotelier from Redwood City has traded California five-star resorts like everyday folks swap Monopoly properties. In October, Ohana bought the 400-room Monarch Beach Resort in Dana Point for $497 million. Now we learn Ohana has sold the 201-room Montage Beverly Hills to a British hotel operator at what’s said to be a California record price per room. Maybourne Hotel Group paid $415 million, or $2.1 million per room, said Alan Reay, president of the Atlas Hospitality hotel consultancy. Ohana isn’t talking, but Reay guesses the close timing of the two deals was to shelter gains from the Beverly Hills property that the firm built in 2008. Plus, Reay notes Ohana sold for over $2 million per room and bought a coastal asset at $1.2 million per room. Or, roughly speaking, “double the rooms, for almost the same price.” “I also…
