Atlas in the news

San Francisco Chronicle 01/14/19 Hurdles Remain as Historic Hearst Building in SF Seeks Hotel Conversion By Roland Li https://www.sfchronicle.com/business/article/Hurdles-remain-as-historic-Hearst-Building-in-SF-13529589.php   A years-long effort to convert the historic Hearst Building into a hotel in downtown San Francisco faces opposition from neighbors and design challenges related to existing long-term leases. The 1909 building at 5 Third St. was once home of the San Francisco Examiner and currently includes offices and retail shops. In 1938, famed architect Julia Morgan redesigned the building’s entrance, lobby and roof. Property owner Hearst Real Estate worked with developer JMA Ventures to propose a high-end hotel conversion with 170 rooms in 2016. Hearst Corp. owns both Hearst Real Estate and The Chronicle… …San Francisco has a hotel shortage, thanks to strong tourism and business travel, and it’s difficult to get new hotels approved, said Alan Reay, president of Atlas Hospitality Group, an Irvine hotel brokerage. The $551 million Moscone Center expansion, which finished this month, is expected to increase hotel demand even more this year. “I think the city is definitely underserved,” Reay said. “It’s such a long gestation period in San Francisco to get anything through, approved and finally constructed.” Only one hotel opened last year in…

The San Diego Union-Tribune 01/09/19 Largest Hotel to Open in California Last Year Was in San Diego By Lori Weisberg https://www.sandiegouniontribune.com/business/tourism/sd-fi-hotel-development-california-20190109-story.html   Even as hotel development in Southern California reached a new high last year, with more than 16,000 rooms under construction, the outlook for the future is not nearly as bullish as in years past. In all, some 112 hotels accounting for 16,700 rooms were in various stages of construction by the end of 2018 — a 28 percent increase over 2017, according to new data released Tuesday by Orange County-based Atlas Hospitality Group. While the number of hotel rooms being built in San Diego County — 2,458 — was down slightly compared to 2017, the growth in construction activity for Los Angeles and Orange counties was far more robust. San Diego, however, did have the largest hotel to open in the state last year — the 400-room InterContinental. In Los Angeles, more than 6,700 rooms were under construction — an increase of 26 percent — while in Orange County, the number of rooms under construction — 3,128 — surged nearly 90 percent. Most of the Orange County hotels are in Anaheim, led by the 613-room Westin Anaheim Resort….

San Francisco Business Times 01/10/19 Bay Area Hotel Development to Surge in 2019 By Alex Barreira https://www.bizjournals.com/sanfrancisco/news/2019/01/10/bay-area-hotel-development-to-surge-in-2019.html   While 14 hotels opened in the Bay Area last year, the same as in 2017, even more may open this year — the region has 47 hotels under construction. But prospects for future Bay Area hotel development look strong after last year’s surge in hotel proposals and construction projects, according to data in the annual report from Atlas Hospitality Group. The report predicted a healthy increase in hotel supply over the next 12 to 36 months. Nearly half of the Greater Bay Area hotels under construction are in Santa Clara county. Developers in 2018 laid out plans to add 254 more hotels amounting to 37,000 rooms, a 25 percent increase in the region’s current room count. San Francisco could see a surge in demand following the finished expansion of the Moscone Center, which makes it a prime venue to host more national conventions and attract events from other major cities. The center’s expanded capacity also promises a more manageable flow of traffic for local businesses, another boon for development. In San Francisco last year, just one hotel opened: the 42-room Lodge at…

Orange County Business Journals 01/09/19 Hotel Openings Down; Construction Up By Katie Murar https://www.ocbj.com/news/2019/jan/09/hotel-openings-down-construction/ Three hotels totaling 445 rooms opened in Orange County in 2018, down 54% from the 960 rooms at six hotels that opened in 2017, data from Irvine-based hotel broker-consultant Atlas Hospitality Group show. The largest was a 164-room Hampton Inn & Suites near John Wayne Airport, followed by the 151-room second tower at Waterfront Hilton Beach Resort in Huntington Beach and the 130-room Lido House in Newport Beach. The decline doesn’t suggest a loss of appetite for new hotels locally. There are 14 hotels with 3,128 rooms under construction, nearly double by both metrics from eight hotels and 1,657 rooms at the end of 2017. OC also has 66 hotels with 10,334 reported rooms in planning—up 15% year-over-year on hotel count from 57 and a dip about 800 rooms or 8% on rooms. The largest hotel now under construction is Wincome Group’s 613-room Westin Anaheim Resort, next to the Anaheim Convention Center. Atlas said last year’s decline in new hotels and the increase in future projects was echoed statewide. New properties in California declined 21% to 52 projects while new rooms were down 39% to 6,592….

The Real Deal 12/26/18 Here Are LA County’s Top Five Hotel Investment Sales of 2018 Franchise-branded hotels dominated the top sales, and 3 were near booming tech hubs By Dennis Lynch https://therealdeal.com/la/2018/12/26/here-are-la-countys-top-five-hotel-investment-sales-of-2018 Westside hotels were all the rage this year. Three of the top five hotel sales of the year were for properties in what has has become the tech epicenter of Los Angeles. All three are branded Doubletree by Hilton hotels, a nationally franchised brand. Hilton has owned the Doubletree brand since 1999. It is its fastest growing brand worldwide since 2007. The other two top hotel sales were branded Courtyard by Marriott, a testament to the strength of national franchises. Hotel development is strong across Los Angeles and California, thanks to high occupancy rates. As of July, there were 37 hotels with 5,631 rooms under construction in L.A. Four had already opened in the first half of the year. Development has been strong in spite of rising construction costs. As many as 10,000 new hotel rooms are expected to come online across the state in the next few years, analysts at Atlas Hospitality Group said earlier this year. But that number could rise even higher. In L.A. alone,…

The Registry 12/20/18 New Hotel Slated for Downtown San Jose Amidst Bay Area Hotel Boom By Meghan Hall New Hotel Slated for Downtown San José Amidst Bay Area Hotel Boom The San Francisco Bay Area is known as a top destination for both work and play, and 2018 has been a record-breaking year for hotel development according to Atlas Hospitality Group’s 2018 Mid-Year report. Santa Clara County, in particular, topped other Northern California submarkets in the number of hotels opened during the first half of 2018 with 17 hotels and 2,657 rooms, an indicator of bullish investors and developers capitalizing on the region’s healthy hospitality market. A new, 105-room hotel planned for 375 and 383 South Baywood Ave. in San José near Santana Row and Google’s proposed Diridon development would capitalize on the economic vibrancy of Silicon Valley once completed. The project application for the hotel was submitted by San Jose-based Cord Associates on behalf of the property owner, a private individual. According to Marcus and Millichap’s Second Quarter California Hospitality report, San Jose in particular makes up for between seven and eight percent of existing rooms under construction, higher than much of the Bay Area and even San Francisco,…

Redland Daily Facts 12/18/18 Redlands Approves a New 88-room Hotel By Jennifer Iyer Redlands approves a new 88-room hotel The Redlands Planning Commission approved another hotel project this year, giving the go-ahead to an 88-room Springhill Suites by Marriott. Other hotels approved by the commission in 2018 are the 77-room Home2 Suites by Hilton, planned for 1340 Industrial Park Ave., and the 123-room WoodSpring Suites hotel set for 1700 Orange Tree Lane. The newest project, planned for the south side of West Lugonia Avenue, about 650 feet east of Nevada Street, was approved Dec. 11 with some minor changes to the facade color and materials. It had been in front of the commission in November, but was continued when commissioners had requested several changes to architecture, finishes and colors. The main complaint then was that the dark front facade popouts resembled giant TV screens. Since then the features were changed to lighter beige colors, which would contrast less with the rest of the building. There are 46 hotels in the works in San Bernardino County, and regionally 472 are in some stage of development, according to Atlas Hospitality’s first-half summary of the hotel construction scene.

HotelNewsNow 12/07/18 Buying & Selling Hotels First understanding the fundamentals is the key to successfully buying or selling any hotel, though those fundamentals are different in every deal. By the HNN editorial staff http://www.hotelnewsnow.com/Articles/291795/Buying-and-Selling-Hotels Know the property “We analyze the hotel’s historical financials and compare their current performance with the market to see if there are any areas of upside. We inspect the hotel and prepare an analysis based on the most recent sales comparables. It is critical that we and our client are all on the same page as to the value of the hotel and what we expect it will sell for. If we are not on the same page, then we do not proceed forward with the listing.” –Alan Reay President, Atlas Hospitality Group Understand buyers’ and sellers’ needs “We create a strategic plan in conjunction with the client to best achieve their goals. That plan may include disposition of the asset(s), debt refinancing, equity recapitalization or to continue to hold the asset(s). Every plan is different as every client’s goals are different.” –Lee Hunter COO, Hunter Hotel Advisors Do due diligence “Every hotel transaction is different and requires a unique due-diligence plan. Hidden details not uncovered…

The San Diego Union-Tribune 11/28/18 Carlsbad’s Park Hyatt Aviara Sells for $170 Million More Than a Year After Being Taken Over by Its Lender By Lori Weisberg https://www.sandiegouniontribune.com/business/tourism/sd-fi-hyatt-aviara-sold-20181128-story.html   The upscale Park Hyatt Aviara resort, which was taken over by its lender more than a year ago following missed payments, is now under new ownership… …Xenia’s purchase makes the Park Hyatt the third largest hotel sale so far this year, behind the $250 million paid for the 805-room San Jose Fairmont in January and the 668-room Grand Hyatt San Francisco, which fetched more than $575 million in March. Although it’s been almost 1 ½ years since the Park Hyatt was taken over by its lender, CW Capital Asset Management, a sale probably took longer because the property includes a golf course, speculates broker Alan Reay. Increasingly, more and more golf courses are closing, and in California they can be expensive to operate given the dry conditions and the cost of water, said Reay, CEO of Atlas Hospitality. “Most properties in San Diego are back at the peak levels of 2007 or above so it’s interesting that this property did not get back to that level, and one of the main…

HotelNewsNow 11/28/18 Despite Risk of Wildfires, Owners Keen on California Along with all of the destruction the wildfires in California have caused, they threaten and disrupt nearby hotels. But despite the risks, some hotel owners continue to see the state as a strong, long-term investment. By Bryan Wroten http://www.hotelnewsnow.com/Articles/291636/Despite-risk-of-wildfires-owners-keen-on-California   REPORT FROM THE U.S.—With three devastating California wildfires now completely contained, hoteliers in the region are assessing their losses and the risks associated with staying and potentially investing more in markets where this is a recurring concern. Having burned more than 200,000 acres, destroyed thousands of buildings and resulted in at least dozens of deaths, the Camp, Woolsey and Hill fires rank among the state’s worst wildfires. The Camp fire alone burned 153,336 acres in an area north of Sacramento and is considered “the most destructive wildfire in California history,” The Washington Post reports. The fires forced thousands of residents to flee their homes, and many are still unaccounted for. Smoke from the wildfires in Butte County caused flight delays and cancellations at San Francisco International Airport. But even as the frequency and intensity of these California wildfires appear to increase each year, some hotel owners who have invested and…

The Orange County Register 11/22/18 10 Economic Trends to Be Thankful for in Often-maligned California By Jonahan Lansner https://www.ocregister.com/2018/11/22/10-economic-trends-to-be-thankful-for-in-often-maligned-california/   It’s the season to be grateful for what we have. Southern California’s economy may not be perfect, and it’s certainly an expensive place to live, but the region continues to provide opportunities for those willing to seek them out. So, as we gobble down cranberry sauce, yams, string-bean casserole and drumsticks … here are 10 economic business trends one can be thankful for. 1. Happiness California is the nation’s fifth-happiest state, according to financial website WalletHub. After juggling 31 demographics, civic and economic variables, WalletHub deemed Hawaii the happiest states followed by Utah, Minnesota, North Dakota … then California. By the way, California ranked No. 14 in Gallup’s annual scoring of the quality of life among each U.S. state. 2. Less poverty Yes, California poverty is too high but progress is being made. The impoverished population statewide was cut by 1.49 million people in five years — a 17 percent decline topped by only three states. Census data shows California with 7.46 million living in poverty last year, the national high, according to the supplemental poverty measure that takes regional…

Los Angeles Business Journal 11/20/18 Inglewood Approves 120-Room Hotel Near New Stadium By Hannah Madans http://labusinessjournal.com/news/2018/nov/20/inglewood-approves-120-room-hotel-near-new-stadium/   Inglewood may soon be getting a new hotel. The mayor and city council have approved a 120-room Tru by Hilton hotel at the corner of 111th Street and Prairie Avenue, near the future NFL Stadium for the Los Angeles Rams and the Los Angeles Chargers. “As Inglewood grows and thrives, creating good jobs for our residents remains a top priority,” Inglewood Mayor James Butts said in a statement. “This hotel will serve our visitors well when they come to Inglewood, but more importantly, it will provide economic development dollars to the City and good jobs to our residents.” Tru by Hilton is part of the Hilton Worldwide portfolio of hotel brands. In addition to its 120 guest rooms, the hotel will have a market, fitness room and rooftop deck. A third of the hotel’s jobs will go to Inglewood residents. The hotel is expected to be completed in 2020. It is just one of a handful of hotels in planning in Inglewood. The Hollywood Park Hotel, with 300 rooms, and the Lairport Hotel, with 128 rooms, are also in the panning stage, according…