Atlas in the news

Orange County Business Journal 09/19/19 Eagle Four Denver: $80M By Katie Murar https://www.ocbj.com/news/2019/sep/19/eagle-four-denver-work-80m/ A joint venture that includes Newport Beach-based Eagle Four Partners is moving ahead on $80 million in work at the Sheraton Denver Downtown. The group bought the hotel a year ago with High Street Real Estate Partners in Atlanta on undisclosed terms; it had been appraised at $415 million, according to Irvine-based hotel broker and consultancy Atlas Hospitality Group. The Sheraton is currently the largest Denver hotel with more than 1,200 rooms; a 1,500-room Gaylord companies resort opens later this year. Eagle Four’s portfolio includes local properties Paséa Hotel & Spa in Huntington Beach, and Balboa Bay Resort, Balboa Bay Club and the Newport Beach Country Club, all in Newport Beach.

Santa Cruz Sentinel 09/17/19 Fairmont Hotel in Downtown San Jose Plans Wide-ranging Renovations By George Avalos Fairmont Hotel in downtown San Jose plans wide-ranging renovations SAN JOSE — The iconic Fairmont Hotel in downtown San Jose is headed for a wide-ranging facelift for its lobby and other public spaces, according to documents on file with city officials. “We look to improve our property in many different ways,” said Anita Rahman, director of sales and marketing with the Fairmont in San Jose. “This is just one facet of that.” Numerous spots on the ground floor of the Fairmont, arguably Silicon Valley’s best-known lodging place, are slated for a renovation, the city documents show. “This is a beautiful building, a great hotel,” said Mark Ritchie, president of Ritchie Commercial, a real estate firm. “It’s time for this.” The city documents showed numerous elements to the Fairmont renovation project. The lobby; the porte cochere, which is the covered entryway where vehicles can drop off passengers entering the hotel; the entrance to the hotel lobby; lobby corridors; the front desk reception area; the restrooms; the north entry; the elevator lobby; the lounge area; and the bar are tapped for renovation. The cocktail lounge was…

Los Angeles Business Journal 09/13/19 Hotel Plans Proliferate in Hollywood By Hannah Madans https://labusinessjournal.com/news/2019/sep/13/hotel-plans-proliferate-hollywood/ Hotel development shows no signs of slowing, especially in Hollywood. Investor Nathan Korman has filed plans with the city for a seven-story hotel at 1723 N. Wilcox Ave. in Hollywood. The proposal calls for an 81-room hotel with two levels of parking and a roughly 1,900-square-foot rooftop restaurant. Korman requested a conditional use permit that would allow for the hotel project in a residential zone. Last year, Korman filed plans for a seven-story, 68-unit apartment building with retail at the site. Requests for more information were not immediately returned. Korman purchased the property for $500,000 in 1994 from American International Group Inc., according to CoStar Group Inc. The building has 18 units and a 5.6% vacancy rate, according to CoStar. Korman’s project isn’t the only hotel planned for the area. Whitley Apartments has plans for a 10-story hotel with 156 guest rooms at 1719 Whitley Ave., which is currently home to 40 residential units. Developer and restaurateur Adolfo Suaya has proposed a seven-story hotel with 133 guest rooms at 1715 to 1721 N. Wilcox Ave. The hotel would replace a parking lot. One of the major…

CoStar 09/11/19 Anbang Finds Buyer for High-Profile Hotel Portfolio Chinese Insurer Selling Luxury Properties to South Korean Buyer for $5.8 Billion By Lou Hirsh https://product.costar.com/home/news/shared/626975670 China’s Anbang Insurance Group reportedly agreed to sell a portfolio of 15 U.S. luxury hotels for more than $5.8 billion to an affiliate of a South Korean financial services company, three years after it purchased the same properties from private equity giant Blackstone Group as part of a high-profile international expansion. Mirae Asset Global Investments, headquartered in Seoul, plans to acquire the high-profile properties that include Loews Santa Monica Beach Hotel near Los Angeles, the Westin St. Francis in San Francisco, Essex House near New York’s Central Park and InterContinental locations in Miami and Chicago, according to unnamed sources in the Wall Street Journal. The deal does not include what is perhaps Anbang’s most high-profile U.S. hotel, the landmark Waldorf Astoria in New York City. The firm bought it for $1.95 billion in 2015 and has closed it for a renovation. Anbang put the hotels on the market after the insurance firm came under heightened scrutiny from the Chinese government over its purchase of trophy assets including luxury hotels. In February last year, China’s Insurance…

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…

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…

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…

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…

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…

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…

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…

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…