Atlas in the news

The Mercury News 08/07/19 Korean Firm Buys Site for Big Hotel in New North San Jose Entertainment District By George Avalos Korean firm buys site for big hotel in new north San Jose entertainment district SAN JOSE — A South Korean hotel operator has taken a significant step in its push to open a big new hotel in north San Jose by purchasing the land it needs to build the new lodging, which would be part of an entertainment district that’s planned for the area. Shilla Stay is eyeing a hotel at a site in the vicinity of 4701 N. First St. in San Jose, according to city planning documents. Milpitas-based Terra Development, the owner of 40 acres where an “entertainment district” is expected to sprout in north San Jose’s Alviso area, has sold some of its property for the hotel site, Santa Clara County property records show. “Terra still owns the Topgolf site,” Jag Kapoor, president of Terra Development, said in an email to this news organization. “We have only sold a 3-acre hotel parcel to Shilla Group.” The buyer, operating with the name Mirae San Jose, paid $22.5 million for the hotel site, according to county public documents…

The Daily Transcript 07/31/19 Hyatt Regency La Jolla Garners $147M in Sale to Hong Kong Fund The 14-story Hyatt Regency La Jolla hotel and the adjoining Sporting Club property have been sold for $147 million to GAW Capital Partners from Hong Kong. By Thor Kamban Biberman In what is being billed as the year’s most expensive lodging transaction in California, the Hyatt Regency La Jolla hotel and the adjoining Sporting Club space have been sold for $147 million in two separate transactions, according to Real Capital Analytics. The sale price includes not just the real estate, but the furniture, fixtures and equipment. The exact price of the real estate itself couldn’t be confirmed. The buyer of the Hyatt was Hong Kong-based GAW Capital Partners, according to CoStar. The sellers were identified by CoStar as Walton Street Capital and JMA Ventures. The sale did not include the Aventine office building, which remains under a separate ownership. The 417-room hotel and The Sporting Club previously sold for $118 million in May of 2015, according to CoStar. The Hyatt, also known as the Hyatt at Aventine, is located at 3777 La Jolla Village Drive. Its rooms were recently updated. The development features 17…

The Daily Transcript 07/23/19   Hotel Industry on Pace for Record Year By Thor Kamban Biberman New hotel construction in California continued at a record pace during the first half of the year, according to an Atlas Hospitality Group report. San Diego County added five hotels with a combined 860 rooms during the year’s first half, including the largest hotel opening in the state — Sycuan Casino Resort’s 302-room project in El Cajon. The next largest hotel to open in the state during the first six months of 2019 was the 271-room Proper Hotel in Santa Monica. The next largest San Diego-area hotel opened during the first half was the 181-room Hampton Inn & Suites at Point Loma’s Liberty Station. The 246-room Carte Hotel & Suites, which is part of the Curio Collection by Hilton, in downtown San Diego is the largest hotel currently under construction in the county. San Diego County had 19 hotels under construction at mid-year, compared to 21 hotels though the first half of 2018. The local room count also declined from 3,410 last year to 2,310. But San Diego County’s planned hotel count rose 17 percent year-over-year to 98, representing 17,870 rooms (up about 5…

San Diego Business Journal 07/31/19 Since January, Five New (San Diego) Hotels Have Opened By Ray Huard https://www.sdbj.com/news/2019/jul/30/january-five-new-hotels-have-opened/ More hotels were built in California in the first six months of 2019 than ever before. San Diego County led the record-breaking pace, according to a report by Atlas Hospitality Group. The county also had the biggest new hotel in the state to open in the first half of the year — the 302-room Sycuan Casino Resort in East County. Since January, five hotels with a total of 860 rooms have opened in San Diego, with more on the way. The closest other California metro area in the number of new hotels was Los Angeles County, in which four new hotels have opened since January with a total of 505 rooms. “We’ve been tracking this for over 20 years, I’ve never seen this volume of new hotels under construction or the number of new hotels to open,” said Alex Reay, president of Atlas Hospitality. “It far outpaces what we saw prior to the recession. We did have a lag during the recessionary times. We’re catching up,” Reay said. “We’re in a great economy from the hotel standpoint. Hotel owners are enjoying record…

CoStar 07/30/19 California’s Top Hotel Sale Hints at Peak Demand Amid Record Tourism in Most-Visited State By Lou Hirsh https://product.costar.com/home/news/shared/1711362280 Hong Kong-based GAW Capital Partners bought the 417-room Hyatt Regency La Jolla hotel and adjacent retail space in San Diego for $147 million in California’s priciest hotel transaction this year, a sign the state’s growing hospitality market in the nation’s most-visited state could be reaching a peak. Walton Street Capital and JMA Ventures sold the 14-story, four-star Hyatt hotel at 3777 La Jolla Village Drive, which included a 32,000-square-foot retail building next door that is vacant and formerly housed a luxury gym tied to hotel operations, according to CoStar. The deal is a reflection of booming interest in hotels in California, popular with tourists for its beaches, conventions and accelerating economy. Hotel research and brokerage Atlas Hospitality Group in Irvine, California, has recorded 152 hotel sales in the state so far this year, up 13.4% over the same time last year. That’s helped set a state record median sale price per room of just more than $130,000 compared to $115,000 last year. “We are definitely at a peak,” Bruce Baltin, managing director of brokerage CBRE’s Hotel Advisory group in Los…

Sacramento Business Journal 07/25/19 Here’s Why So Many New Hotels Are Under Construction in Sacramento By Emily Hamann https://www.bizjournals.com/sacramento/news/2019/07/25/heres-why-so-many-new-hotels-areunder-construction.html Sacramento is in the middle of a hotel building boom, according to data released last week by Irvine-based brokerage Atlas Hospitality Group. The group tracks new hotel construction and the sale of hotels. According to its midyear survey, hotel construction is booming across California. Throughout the state, 36 hotels have opened so far this year, a 38% increase year-over-year. The number of hotels under construction is up 28%, and the number of new rooms went up 25%. In Sacramento County, there are now 32 hotels, with 4,191 more rooms, in the planning stages, an increase of 20% over last year. Earlier this year, the 124-room Hilton Garden Inn Sacramento Airport Natomas opened its doors, as well as the 105-room Home2 Suites by Hilton in Roseville. There are nine more under construction, which will add 1,045 more rooms between them, in addition to major hotel expansions in the works at both Thunder Valley Casino Resort near Lincoln and Cache Creek Casino Resort in Yolo County. Atlas president Alan X. Reay said there are a number of factors behind the surge in hotel…

HotelNewsNow 07/29/19 5 Things to Know About Hotel Development in California By Danielle Hess http://www.hotelnewsnow.com/Articles/297358/5-things-to-know-about-hotel-development-in-California IRVINE, California—Construction costs may be high, but that’s not stopping developers from building new hotels in the Golden State. Atlas Hospitality Group’s 2019 Mid-Year California Hotel Development Survey shows 36 hotels opened in the first six months of the year, and new hotels under construction rose 28% as the number of new rooms under construction increased 25%. California had 1,143 hotels in planning during the first half of the year compared to 959 for the same period last year. Here are five main takeaways from the survey from Alan Reay, president of Atlas. 1. Marriott product dominates new supply In hotels and rooms under construction, brands under Marriott International led the way, with 71 hotels and 11,200 rooms. Reay said Marriott is the No. 1 choice for developers in California for new hotel product. The vast majority is that higher-end limited service,” he said. “The exception to that is the huge volume of full-service product that we are seeing in the downtown Los Angeles market, which really is leading all of California in terms of hotel development.” 2. Independent hotels beat Hilton for new product…

Bisnow 07/23/19 California Seeing an Influx of Hotel Developments Midway Through the Year By Joseph Pimentel https://www.bisnow.com/los-angeles/news/hotel/report-california-sets-new-records-for-hotels-and-rooms-under-construction-99995 California is on a record-breaking pace for hotel openings and construction this year with Los Angeles leading the way, according to a report by Atlas Hospitality Group. Atlas Hospitality’s midyear California Hotel Development Survey found that 36 hotels opened in the first half of this year in the state compared to 26 during the same time period last year. The number of hotels under construction increased 28% from 183 to 234, the report found. The number of new rooms under construction increased 25% from 25,872 to 32,424. The report also found there were 1,143 hotels in various planning stages midway through 2019, compared to 959 in the first half of last year. Los Angeles is leading the way, according to the report. This year, Los Angeles opened four new hotels totaling 505 units — the largest being the 271-room Santa Monica Proper Hotel. “California hotels are seeing record revenues and profits across the state, with a strong economy and high demand from both business travelers and tourists,” Atlas Hospitality President Alan Reay told Bisnow. “In addition, the cost of existing hotels are close…

HotelNewsNow 07/19/19 5 Things to Know: Atlas Survey Shows Los Angeles Leads California Hotel Construction http://www.hotelnewsnow.com/Articles/297251/5-things-to-know-19-July-2019 Atlas survey shows Los Angles leads California hotel construction: Through the first half of 2019, California new hotel construction continued at a “record-breaking pace,” compared to the same period in 2018, according to Atlas Hospitality Group’s 2019 mid-year California Hotel Development Survey. A total of 36 hotels opened in the first six months, while 26 opened in the same period in 2018. The number of hotels under construction increased 28%, while the number of new rooms under construction rose 25%. Los Angeles County led the state with 45 hotels, totaling 7,497 rooms, under construction. The largest among those hotels include an AC Hotel and Moxy Hotel, both with 410 rooms. “Lenders and developers continue to be very bullish on new California hotels, as they see a very positive long-term outlook for the Golden State. They are also encouraged by the states (revenue per available room) increases, as compared to the rest of the country,” the survey states.

Orange County Business Journal 07/18/19 Hotel Development Up 89% By Katie Murar https://www.ocbj.com/news/2019/jul/18/hotel-development-89/ Current hotel development in Orange County is nearly double what it was last year, according to a report by Atlas Hospitality Group in Irvine. There were 17 hotels under construction in Orange County last month, up from 9 in the same period last year. The largest remains Wincome Group’s 613-room Westin Anaheim Resort, a $250 million redevelopment of the former Anabella Hotel slated to open next year. Two Hampton Inn & Suites in Anaheim and Buena Park comprised the total hotel openings so far this year in OC, adding 178 and 102 rooms, respectively. As of June, the county had 67 hotels with 10,500 rooms in planning, up 6% and down 2%, respectively, from June 2018. Strong local hotel development reflects statewide trends; Atlas data shows California hotel construction this year is expected to top record levels set in 2018.

CoStar 07/03/19 Los Angeles Commercial Real Estate Industry Gives Mixed Reaction to New Airbnb Regulations New Ordinance in Limits Days of Operation, Requires Annual Fee By Karen Jordan The city of Los Angeles is enacting new regulations on short-term rentals, made popular by companies such as Airbnb, that apartment owners are rebuking but hoteliers are hoping help curb the competition. Short-term rental companies such as Airbnb or VRBO provide online services that connect property owners or renters with visitors who want to pay for space for 30 days or less instead of going to a hotel. They have become a dominating force nationwide since entering the marketplace in earnest a decade ago, and now cities nationwide are moving to regulate the services as neighborhood residents complain about the influx of strangers to the rentals and hoteliers complain that the homeowners don’t pay the same taxes or fees for their rentals. Among the Los Angeles regulations, which took effect July 1, hosts will only be able to rent out their primary residences and will not be allowed to take in visitors for more than 120 days unless they register for “extended home-sharing,” which is a discretionary designation with criteria including having…