Atlas in the news
Citizen Hotel Sold for $53 Million, Records Confirm
Sacramento Business Journal 09/11/19 Citizen Hotel Sold for $53 Million, Records Confirm By Emily Hamann https://www.bizjournals.com/sacramento/news/2019/09/11/citizen-hotel-sold-for-53-million-records-confirm.html Downtown Sacramento’s Citizen Hotel sold for $53.2 million in July, county records show. That’s $7 million less than what Platinum Equity paid for the property the last time it changed hands, in 2015. In the sale, Miami-based private equity firm Cambridge Landmark purchased the boutique hotel from Beverly Hills-based firm Platinum Equity. Platinum Equity’s 2015 purchase of the property was for $60 million, equating to $303,030 per hotel room, which was believed to be a record purchase price for a Sacramento hotel. The new sale valued the hotel at $271,428.57 per room, which is still higher than other recent hotel sales. According to data from Atlas Hospitality Group, the median hotel sale price in California was $130,025 per room in the first half of the year, which is up 146% over the last 10 years. Representatives of Cambridge Landmark, which specializes in the hotel industry, declined to confirm or comment on the price. Representatives of Platinum Equity did not respond to requests for comment. Jones Lang LaSalle Americas Inc. helped broker the deal. When asked to confirm the price, JLL communications manager Megan Dolan…
Onni Group Proposes One of Los Angeles Area’s Largest Hotels
CoStar 09/03/19 Onni Group Proposes One of Los Angeles Area’s Largest Hotels Developer Seeks Approval for Over 850 Rooms in Glendale, California By Karen Jordan https://product.costar.com/home/news/813587664 Developer Onni Group has proposed a more than 850-room hotel in Glendale, California, which could become one of the largest hotels by room count in greater Los Angeles. The proposed hotel, at 611 N. Brand Blvd. in downtown Glendale, consists of a 32-story tower and a 28-story tower built on a shared podium with underground and above ground parking, according to city documents. Potential plans include 6,400 square feet of commercial space, according to Mark Berry, principal development officer at the City of Glendale. That could include shops and restaurants, as well as a swimming pool. Onni Group has submitted its plans in the first of a two-step design review process, the preliminary stages of entitlement, but the Glendale City Council will make the final decision on the project, according to Berry. The project would be the largest hotel by room count in the Los Angeles County region known as the Tri-Cities area, which includes Burbank, Glendale and Pasadena, according to hotel brokerage and research firm Atlas Hospitality Group. It would also be among…
Hotel De Anza in Downtown San Jose Joins Hyatt Hotels Chain
The Mercury News 09/04/19 Hotel De Anza in Downtown San Jose Joins Hyatt Hotels Chain By George Avalos Hotel De Anza in downtown San Jose joins Hyatt Hotels chain SAN JOSE — The Hotel De Anza, a historic hotel in downtown San Jose, is poised to gain greater visibility by joining World of Hyatt, a worldwide lodging powerhouse. The hotel, built in 1931 during the Great Depression, is one of the most prominent hotels in the Bay Area and is scheduled to join the Hyatt Hotels on Sept. 10, according to the hotel chain. “For hotel owners, our platform will deliver opportunities for enhanced operational excellence and financial performance,” Mark Hoplamazian, chief executive officer of Hyatt Hotels, said in comments emailed to this news organization. The way was paved for Hotel De Anza to join World of Hyatt following last November’s purchase by Hyatt Hotels of Two Roads Hospitality, a lifestyle hotel management company. Those hotel brands that Hyatt obtained include Alila, Destination, Joie de Vivre, Thompson, and tommie. The Hotel De Anza is one of the properties that was owned by the Destination chain. “We will leverage the shared expertise of Hyatt and Two Roads across our powerful combined…
Staying Power
Los Angeles Business Journal 08/30/19 Staying Power Investors are buying modest hotels but holding onto trophy properties By Hannah Madans https://labusinessjournal.com/news/2019/aug/30/staying-power A rising number of smaller, modest hotels changed hands in the first half of this year in Los Angeles — a marked change from the same period last year when several large, luxury hotels in the county sold at premium prices. Investors in luxury hotels and resorts are likely hanging on to such “trophy properties” because business is steady and revenue per room is rising. “With revenues being high, there’s not a huge motivation to sell,” said Bruce Baltin, a managing director at CBRE Group Inc.’s hotel platform. According to Atlas Hospitality Group, there were 22 hotels sold in L.A. between January and June of this year with deal volume totaling $180 million — an average of $8.2 million a sale. During the same period last year, hotel sales averaged $18.8 million apiece, with 14 deals in L.A. and dollar volume reaching $263 million. The biggest deal during the first half of this year was the $44.5 million sale of Hyatt Place Los Angeles/LAX/El Segundo. A handful of other hotels sold for more than $10 million but no other…
Irvine Marriott Sells at California’s Top Hotel Price This Year
CoStar 08/29/19 Irvine Marriott Sells at California’s Top Hotel Price This Year Investor Interest in Golden State’s Hospitality Drives Increased Sales By Karen Jordan https://product.costar.com/home/news/shared/1293453670 An investor has bought the Marriott Irvine in Southern California’s Orange County for more than $152 million, or about $314,000 per room, according to public records. That price tag would represent the most expensive hotel sale of the year in the Golden State, CoStar records show. Investment manager CBRE Global Investors Ltd. sold the 485-room hotel at 18000 Von Karman Ave. in Irvine to Plaza Investment & Consultancy LLC. The deal surpasses what had previously set the year’s top hotel sales price in California, the $136 million sale of the Hyatt Regency La Jolla in San Diego last month, according to hospitality brokerage and consultancy Atlas Hospitality Group. The Marriott’s per-room sales price is the highest paid in Irvine since the sale of the AC Hotels by Marriott at 3309 Michelson Dr. to Pacific Hospitality Group in March 2017 for roughly $373,000 per door, according to CoStar data. The Marriott Irvine, which is the second-largest hotel by room count in Irvine, last sold in June 2015 when CBRE Global Investors paid $128.5 million, or about…
California Hotel Sales Surge, Riding Economic Growth
CoStar 08/27/19 California Hotel Sales Surge, Riding Economic Growth By Lou Hirsh https://product.costar.com/home/news/shared/1461623265 California hotel property sales set a new price-per-room record as the number of sales increased over last year, though the momentum could slow amid escalating labor costs and international trade disputes. The number of hotel property sales in the state rose 8% in the first half of 2019 from the same time last year as 145 properties changed hands, according to hotel brokerage and research firm Atlas Hospitality Group, which tracks California hotel sales and development. Those transactions totaled $2.05 billion, a total dollar volume that was down almost 12% from a year earlier. Still, the increased sales activity pushed the price paid per room to a record median price of $130,025, up 12.7% from the first six months of 2018. That’s also a rise of 146% over the past 10 years. “As long as the economy remains strong and interest rates remain low, prices should continue to go up,” said Alan Reay, president of Atlas Hospitality Group. The acceleration in sales this year follows a significant drop that occurred in the first half of 2018. Atlas Hospitality Group showed California posting a 35% decline in the…
California Deals Pace Up After Slow Start to 2019
HotelNewsNow 08/27/19 California Deals Pace Up After Slow Start to 2019 By Bryan Wroten http://www.hotelnewsnow.com/Articles/297797/California-deals-pace-up-after-slow-start-to-2019 IRVINE, California—The pace of California hotel total transaction volume and dollar volume slowed in the first half of 2019, but median price per room set a mid-year record at $130,025, according to Atlas Hospitality Group’s latest survey. The California Hotels Sales Survey 2019 Mid-Year from Atlas Hospitality Group reports the statewide median price per key is a 12.7% increase year-over-year and an increase of 146% over the past 10 years. Individual sales in the state increased by 8% during the first six months of the year, led by San Bernardino County (83%) and Los Angeles County (57%). San Diego County recorded the highest total sales dollar volume, at just below $329 million. San Francisco County was next at $294 million. Hotel News Now reached out to Alan Reay, president of Atlas Hospitality Group, for the key takeaways form the mid-year transaction survey. 1. A second-quarter turnaround A “very quiet” transaction market during the first quarter caused some concern, Reay said. After a 2018 which was widely considered to be down, the first half of 2019 showed signs of mirroring 2009, when there was a big…
‘Head-scratcher’: As Tourism Cools, 20 Hotels Open in Southern California
The Orange County Register 08/26/19 ‘Head-scratcher’: As Tourism Cools, 20 Hotels Open in Southern California By Jonathan Lansner ‘Head-scratcher’: As tourism cools, 20 hotels open in Southern California Southern California’s hotel building boom is heating up just as tourism faces everything from declining visitor growth, a labor shortage and rising costs. Atlas Hospitality Group’s mid-year reports on lodging development and sales activity tell us there’s little cooling in hotel construction in Los Angeles, Orange, Riverside and San Bernardino counties: (1) 20 hotels with 2,478 rooms opened in 2019’s first six months vs. 11 hotels with 1,712 room a year earlier. (2) 89 hotels with 14,016 rooms were under construction at mid-year. That’s 20 hotels than June 2018. (3) 462 hotels with 67,964 rooms are on drawing boards at mid-year. That’s up 60 hotels planned in a year. And this building boom is not just a local trend. Statewide, 36 hotels opened this year vs. 26 in 2018. Under construction? 234 hotels, up 51 in a year. In planning? 1,143 hotels, 184 more. Yet hotel developers’ optimism seems askew from some travel industry benchmarks. Filling rooms is more challenging in 2019, as is filling staffs to clean those rooms. Plus, operations…
California Hotel Sales Hit Record Price
Napa Valley Register 08/24/19 California Hotel Sales Hit Record Price: Five Napa County Hotels Sold in First Half of 2019 By Jennifer Huffman https://napavalleyregister.com/business/california-hotel-sales-hit-record-price-five-napa-county-hotels/article_9d39d012-c622-5ffa-869c-9b24042791aa.html California hotel sales hit a record median price per room through the first six months of 2019, at $130,025, according to a report from Atlas Hospitality Group. This was a 12.7 percent increase over the same period in 2018, and up 146 percent over the past 10 years, said the report. Individual hotel sales in the Golden State rose 8 percent in the first half. San Bernardino County led the way, up 83 percent, followed by a 57 percent increase in Los Angeles County. San Diego County saw the highest total sales dollar volume, at just under $329 million. San Francisco County was next, with $294 million. Locally, five hotels sold in Napa County in the first six months of the year. They include the McClelland-Priest Ben & Breakfast Inn at 569 Randolph St. in Napa, The Setting Inn at 1205 Hillview Lane in Napa, Bel Abri at 837 California Blvd. in Napa, the Yount Mansion Inn at 423 Seminary St. in Napa and Dr. Wilkinson’s Hot Springs Resort at 1507 Lincoln Ave. in Calistoga. The…
Southern California Hotel Buyers Gobble Up Smaller Properties
The Orange County Register 08/21/19 Southern California Hotel Buyers Gobble Up Smaller Properties By Jonathan Lansner Southern California hotel buyers gobble up smaller properties Southern California hotel investors have switched gears, buying more but smaller properties in 2019’s first half. According to Atlas Hospitalities semi-annual report on hotel transactions, 56 hotels in the four counties covered by the Southern California News Group were bought in the first half vs. 41 in 2018. My trusty spreadsheet tells me the region represented 39% of all California hotel deal so far this year vs. 31% in 2018. With the buying increase came a smaller appetite. The average Southern California hotel sold had only 68 rooms this year vs. 104 in ’18. That helps explain why the price per room paid locally was on average 22% lower this year. The regional trend is a sharp contrast to dealmaking in the rest of the state where 89 hotels were sold in the year’s first six months. That’s down slightly from 93 in 2018. The size of the average sold was flat at 82 rooms and price per room inched up less than 1%. By county, you can see this more-sales/smaller-hotels pattern across Southern California: Los…
Does Southern California Need 571 More Hotels?
The Orange County Register 08/13/19 Does Southern California Need 571 More Hotels? By Jonathan Lansner Does Southern California need 571 more hotels? Southern California has seen 571 hotels either open this year, under construction or planned. Atlas Hospitality’s mid-year report on local lodging development activity tells us there’s little cooling in hotel construction in Los Angeles, Orange, Riverside and San Bernardino counties. In the year’s first six months, 20 hotels with 2,478 rooms opened with plenty more coming. The four-county market had 89 hotels with 14,016 rooms under construction at mid-year. That’s 29% more hotels in the works vs. June 2018 and 27% additional rooms being built. On top of current construction, developers have plans to build another 462 hotels with 67,964 rooms at mid-year. That’s 15% more hotels planned vs. June 2018 with 11% additional rooms on the industry’s drawing boards. What’s new this year? In Los Angeles County, four hotels with 505 rooms opened — Proper Hotel in Santa Monica (271 rooms); AC Hotel in Beverly Hills (176 rooms); PaliHotel in Culver City (49 rooms); and Arts District Firehouse Hotel in Los Angeles (9 rooms). In Orange County, two new hotels with 280 rooms — Hampton Inn &…
More Than 1,000 Hotel Rooms Headed for North San Jose
The Mercury News 08/12/19 More Than 1,000 Hotel Rooms Headed for North San Jose By George Avalos More than 1,000 hotel rooms headed for north San Jose SAN JOSE — A burst of hotels that are under construction or poised to launch is expected to bring north San Jose roughly 1,100 new hotel rooms, according to sources related to the endeavors. All told, seven hotels are under construction, have just opened or are poised to launch development, in north San Jose. “The demand for hotel rooms will absolutely support this development activity,” said Alan Reay, president of Atlas Hospitality Group, an Irvine-based firm that tracks the California lodging market. Two hotels opened this month, four others are being built, and land has been purchased for the seventh hotel. Together, these hotels would bring 1,110 hotel rooms to north San Jose once they are all complete and begin operations. The six hotels that are under construction or recently opened account for 910 new rooms. “If anything, demand will probably increase,” Reay said. Recently released market research appears to bolster Reay’s assessment. Over the first five months of 2019, compared with the similar five-month stretch of 2018, revenue per available room in…
