Atlas in the news

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…

Multi-Housing News 10/23/18 Investors Boost Deal Flow in Los Angeles The strong fundamentals of the metro’s multifamily market are attracting many buyers, pushing the year’s sales volume to $2.9 billion through July. by Adriana Pop https://www.multihousingnews.com/post/investors-boost-deal-flow-in-los-angeles/ Investors are drawn to the Los Angeles multifamily market’s stability, high occupancy and rising rents, as job and population gains underpin rental demand in the context of a high barrier to homeownership. Employment growth was led by leisure and hospitality (26,800 jobs), a trend which will likely continue as 37 hotels with 5,631 guestrooms were underway as of June, according to Atlas Hospitality Group’s midyear report. Professional and business services, which gained 17,000 jobs, and education and health services (16,200 jobs) also display high growth potential in the foreseeable future, supporting demand for high-end apartments. The strong fundamentals of the Los Angeles multifamily market attracted a large number of investors in the first seven months of 2018, when transactions rose to $2.9 billion, surpassing the annual sales volume recorded in 2017. Despite a surge in construction in 2016 and 2017, occupancy has stayed high, indicating a rapid absorption of new inventory. By the end of 2018, developers are expected to add more than 10,000…

The Real Deal 10/19/18 The ‘Perceived Risk’ Factor While the Westside, with help from the tech sector, saw big hotel trades over the past year, some anticipate a slowdown in hospitality development By Caroline Anderson https://therealdeal.com/la/issues_articles/the-perceived-risk-factor/ The Los Angeles hotel building boom has been hot for so long that some observers are anticipating a cooldown. L.A. County RevPAR (revenue per available room) hit an all-time high of $164.67 while maintaining 84.7 percent occupancy in August, according to data from STR. And there is still plenty of room for new hotels, according to experts tracking the market. New rooms made up less than 3 percent of the overall supply both this year and last, according to Bruce Baltin, managing director of CBRE Hotels Consulting. But Tony Malk, managing director at commercial real estate advisory firm HFF, said that as construction prices rise, he expects fewer ground-up projects and more acquisitions, such as the nearly $127 million deal he brokered in April for the 283-room Hotel MdR, a Doubletree by Hilton Hotel in Marina del Rey. The sale was the second-priciest hotel trade in L.A. County from July 2017 to August 2018, according to data from Real Capital Analytics. “There’s a perceived…

Silicon Valley Business Journal 10/18/18 Crane Watch Update: Proposals for More Than 4,000 Hotel Rooms Have Piled Up in San Jose’s Tight Market By Janice Bitters https://www.bizjournals.com/sanjose/news/2018/10/18/crane-watch-update-proposals-for-more-than-4-000.html In Silicon Valley, where business travelers come from all over the globe to work with the biggest tech companies in the world, hotel rooms have become a hot commodity — particularly on weekdays. Developers are responding to the demand, according to recent data compiled by the Silicon Valley Business Journal for our Crane Watch project, which tracks and maps projects spanning 90,000 square feet in size or greater throughout San Jose. That data shows more than 4,030 hotel rooms are in the city’s pipeline, meaning they have been recently proposed, are currently entitled to be built, are under construction or just completed. Of those rooms, however, only a fraction have actually broken ground. The Business Journal has tallied only 1,389 hotel rooms in San Jose that are currently under construction or very recently completed. Take a look through the slideshow above to see some of the hotels that have been proposed or are under construction in the city currently. Though the Business Journal is currently only tracking the city of San Jose via…

CoStar 10/17/18 Disney’s Scrapping of Luxury Hotel Disrupts Development in Anaheim, California Disneyland’s Hometown Seeks New Source of High-End Rooms By Lou Hirsh http://www.costar.com/News/Article/Disneys-Scrapping-of-Luxury-Hotel-Disrupts-Development-in-Anaheim-California/205485 The Walt Disney Co.’s recent decision to call off its plans for a luxury 700-room resort hotel next to Disneyland leaves Anaheim, California, behind other destination cities in high-end luxury hotels as a major retail development has been thrown into flux. The city, which has two high-end hotels and three more approved or under construction, has tried to boost luxury hotel development with tax rebates. But a ballot measure next month that could increase the minimum wage for workers in hotels that take the tax break highlights how contentious the issue has become within this Orange County community in the Los Angeles suburbs. Adding to the pressure is Disneyland’s planned Star Wars Galaxy’s Edge attraction that is expected to result in a surge of visitors when it opens next year. “The city has argued that they are losing out to some of the nearby cities as they have not been able to offer four- or five-star hotels,” Alan Reay, president of Irvine, California-based brokerage and research firm Atlas Hospitality Group, said of Anaheim. The section of…

Orange County Business Journal 10/15/18 HOSPITALITY: $415M VALUE ESTIMATED FOR SHERATON Eagle Four Takes Flight to Denver in Big Hotel Buy By Mark Mueller Monday, October 15, 2018 http://www.ocbj.com/news/2018/oct/15/eagle-four-takes-flight-denver-big-hotel-buy/   Newport Beach-based hospitality investor Eagle Four Partners is the latest local name taking notice of Colorado’s red-hot hotel market. Eagle Four announced the purchase of the 1,231-room Sheraton Denver Downtown Hotel last week, currently the largest hotel in Colorado by room count. The property is in the city’s financial and business district. It has 133,000 square feet of events meeting room space, plus several on-site restaurants, among other amenities. It was built by renowned architect I.M. Pei in 1960 as a Hilton property. It’s seen several rebrandings since then, and was turned into a Sheraton a few years ago. Eagle Four bought the hotel in a venture with Atlanta-based High Street Real Estate Partners; it’s the first deal involving the two privately held investors. The property was purchased from Chartres Lodging Group LLC of San Francisco on undisclosed terms. Officials with Irvine-based hotel brokerage and consultancy Atlas Hospitality Group said the hotel was appraised at $415 million in 2016, or roughly $337,000 per room. Chartres Lodging Group paid a reported…

The Signal Santa Clarita Valley 10/05/18 Stevenson Ranch La Quinta Inn and Suites Sold at $22 Million By Tammy Murga https://signalscv.com/2018/10/stevenson-ranch-la-quinta-inn-and-suites-sold-at-22-million/ La Quinta Inn and Suites in Stevenson Ranch has sold to a local private investor for more than $20 million, the dealer Atlas Hospitality Group said. Atlas Hospitality Executive Vice President Oliver Shah and Vice President Robert Feist represented the seller in the September deal. At $22 million, or just more than $196,000 per key, the deal set a record price per bedroom for La Quinta Inn, according to Feist and Shah in a statement. The property labeled one of the highest demographic markets in Southern California, generated a “significant amount of interest,” they added. The new owners plan to be hands-on, the sellers went on to say, who represented “an institutional investor out of West L.A.” JHK Hospitality LLC, a single-manager limited liability company, registered with the Secretary of State’s Office in July, is reported as the purchaser of the property. La Quinta Inn and Suites Santa Clarita-Valencia, located at 25201 The Old Rd., recently finished a multi-million dollar renovation, according to Atlas Hospitality’s website. The Stevenson Ranch location offers 112 guestrooms and more than 20 suites, offering…

Los Angeles Business Journal 09/26/18 DTLA Hotel Boom Continues http://labusinessjournal.com/news/2018/sep/21/downtown-distinction-millennial-move-ins/ Westside-based commercial real estate lender Dominion Mortgage Corp. has provided an $11.6 million construction loan to develop a 64-room hotel branded by Hyatt Hotels Corp. at 1525 N. Cahuenga Blvd. in Hollywood. The under-construction hotel, which is expected to be completed in November 2019, is slated to be part of the Unbound Collection by Hyatt brand. Hyatt has partnered with Hollywood-based hotel developer PNK Group Investments. The project already had received some financing via a $6 million construction financing bond as well as overseas financing through the EB-5 program, which Congress established in 1990 to encourage foreign investment in the United States. The $11.6 million loan is interest-only, where the borrower only pays interest on the loan for a fixed term. The loan’s initial term is two years but offers extensions. “The loan was structured with a balloon payment, as the developer intends to sell the asset and thus, did not want to be locked into a hefty pre-payment penalty,” Keith Olson, partner at Dominion Mortgage, said in an email. The Hyatt-affiliated hotel is part of a larger hotel construction boom in Los Angeles County. Chicago-based developer Oxford Capital Group…

The Registry 09/21/18 Northern California Hotel Market Continues to Favor Sellers By Meghan Hall https://news.theregistrysf.com/northern-california-hotel-market-continues-to-favor-sellers/   The San Francisco Bay Area remains one of the country’s top tourist destinations in the country, making its hotel market one of the healthiest in the nation. 2017 was one of the strongest years on record for hotel sales and development over the past two decades, and investors remain bullish and eager to enter the Northern California hotel market. Although, hotel sales within the state of California have decreased significantly through the first half of 2018, a new report released by Irvine, Calif.-based Atlas Hospitality Group indicates that the hotel market will hold stable long-term. As a whole, California saw a 35 percent decline in the number of hotel transactions during the first six months of 2018; there were 134 individual sales compared with 206 during the same period in 2017. Atlas Hospitality states that this is the third-lowest total in the past ten years and one of the most drastic declines recorded since the 2007 recession, when transactions dropped by 44 percent between 2007 and 2008 and 51 percent between 2008 and 2009. Only two counties in California posted increases in hotel sales…