Atlas in the news

San Fernando Valley Business Journal 09/19/18 Stevenson Ranch La Quinta Inn’s $22 Million Sale Breaks Brand Record By Michael Aushenker http://www.sfvbj.com/news/2018/sep/19/stevenson-ranch-la-quinta-inns-22-million-sale-bre/   La Quinta Inn & Suites Santa Clarita – Valencia has sold to a local private investor for $22 million, according to Atlas Hospitality Group, which arranged the deal. Atlas Hospitality Group Executive Vice President Oliver Shah and Vice President Robert Feist represented the seller. Feist, who represented “an institutional investor out of West L.A.,” said the new owner plans to be hands-on. He noted that the sale, at just over $196,900 per key, set “a record price per room for a La Quinta” based on available data. “There was a significant amount of interest (in this property),” Feist told the Business Journal. “The seller ultimately chose a buyer who was looking to replace a property.” La Quinta Inn & Suites Santa Clarita – Valencia, which features 112 trooms, including 28 suites, is located at 25201 The Old Road in Stevenson Ranch. The establishment recently completed a substantial renovation, with more than $2.5 million spent on repairs and upgrades. Driving local demand are such destinations as Six Flags Magic Mountain and Hurricane Harbor, Valencia Town Center and California Institute…

HotelBusiness 09/18/18 McNeill Hotel Investors Secures Capital; More Transactions… Atlas Hospitality Group has arranged the sale of the La Quinta Inn & Suites Santa Clarita – Valencia in Stevenson Ranch, CA. Atlas EVP Oliver L. Shah and VP Robert J. Feist represented the seller. The buyer was a local private investor.

Los Angeles Business Journal 09/14/18 Will Loews Santa Monica Top $500M? Recent deals in luxury segment of region’s hotel industry suggest as much By Ciaran McEvoy http://labusinessjournal.com/news/2018/sep/14/will-loews-santa-monica-top-500m/   Loews Santa Monica Beach Hotel could fetch more than $500 million now that China-based Anbang Insurance Group Co. has put it on the market after counting it as part of its portfolio for just two years. The price estimate comes from Alan Reay, president of Irvine-based Atlas Hospitality Group, who based the figure on recent sales comparisons, including last year’s deal for the 358-room Ritz-Carlton Bacara in Santa Barbara. New York-based Carey Watermark Investors bought the Santa Barbara establishment for $375 million, just a bit more than $1 million a room. Reay said the 347-room Loews Santa Monica’s beachfront location in the L.A. market would likely take the mark up to $1.5 million per room or so. Anbang purchased the Loews hotel for $485.4 million in 2016, but the company has been mired in scandal since then. China’s central government seized control of the company earlier this year after its chairman, Wu Xiaohui, was sentenced to 18 years in prison for fraud and embezzlement. The crackdown came after an international buying spree…

The San Diego Union-Tribune 09/14/18 Historic Glorietta Bay Inn Sold to L.A. Hotel Group for $39M By Brittany Meiling http://www.sandiegouniontribune.com/business/tourism/sd-fi-glorietta-sale-realestate-deal-20180911-story.html   The historic mansion in Coronado that local magnate John D. Spreckels once called home has sold to a Los Angeles hotel company for $39 million. Over 100 years ago, the landmark six-bedroom ocean property was built for a few zeros less: $35,000. The extravagant island property — now called The Glorietta Bay Inn — today includes 89 contemporary rooms and suites. It was sold to Kamla Hotels, a family-owned company that owns a mix of boutique and branded hotels in California. The historic property didn’t come cheap. At $39 million, Kamla paid nearly $400,000 per room…   …In the years since, Spreckels’ personal mansion was converted into a B&B property and later, The Glorietta Bay Inn. For the past 42 years, it was owned by La Jolla venture capitalist Ralph “Buzz” Woolley Jr. Atlas Hospitality Group’s president Alan Reay, who brokered the sale, said Woolley sold the property because he wanted to retire. The inn stands out in Kamla’s current portfolio as the only historic property, with mid-range brands including Best Western and Fairfield Inn & Suites dominating its…

The Mercury News 09/10/18 Downtown San Jose Hotel Plans to Expand at Choice Site By George Avalos https://www.mercurynews.com/2018/09/10/downtown-san-jose-hotel-plans-expand-at-choice-site-google-adobe-amazon/   SAN JOSE — Plans have expanded for a hotel tower that would sprout on a choice site in downtown San Jose, a short distance from a planned Adobe Systems campus expansion and proposed Google transit village. A 19-story hotel being eyed for 8 N. Almaden Blvd. and West Santa Clara Street in San Jose originally was expected to have 220 rooms. But a newly submitted set of proposals by project developer KT Urban calls for a 272-room hotel, complete with a rooftop restaurant. “The Silicon Valley hotel market looks strong enough to support this kind of expansion,” Alan Reay, president of Irvine-based Atlas Hospitality Group, which tracks California’s lodging market, said Monday. One reason the market is robust: Rooms in the region — and San Jose in particular — are tough to come by during the week. “I was just talking to somebody who is developing a hotel in San Jose, and they said it’s very difficult to find rooms during the week,” Reay said. Tech-related business travelers are driving the demand during the week, lodging experts said. “Rooms in San…

San Diego Business Journal 09/10/18 Glorietta Bay Inn Sold for $39M By Ray Huard http://sdbj.com/news/2018/sep/10/glorietta-bay-inn-sold-39m/ Coronado’s historic Glorietta Bay Inn has been sold for $39 million to Kamla Hotels by Glorietta Bay Inn, LLC. The 110-year-old boutique hotel at 1630 Glorietta Blvd. is comprised of an 11-room mansion and 89 contemporary rooms and suites. The building has been designated an historic landmark by the Coronado Historical Association. The sale was brokered by Atlas Hospitality Group. “This is the first time in over 40 years that Glorietta Bay Inn was offered for sale,” said Alan X. Reay, president of Atlas Hospitality Group.

SoCal Real Estate 08/27/18 What Does Anbang’s Disposition Mean for SoCal Hotels? By Carrie Rossenfeld https://socal-re.com/what-does-anbangs-disposition-mean-for-socal-hotels/ Several news sources have recently reported that Chinese insurance firm Anbang Insurance Group Company is seeking to dispose of its $5.5 billion U.S. luxury-hotel portfolio, which it had acquired from Blackstone in September 2016. Alan Reay, president of Irvine, California–based Atlas Hospitality Group, tells SoCal Real Estate that there’s no downside to the move. “Of the 15 hotels that Anbang purchased from Blackstone, three hotels are located in Southern California,” says Reay. “They are Loews Santa Monica (347 rooms), Montage Laguna Beach (260 rooms), and the Ritz Carlton Laguna Niguel (396 rooms). When purchased, the allocated prices on these three hotels accounted for 19.7 percent of the entire purchase price ($1.084 billion).” Reay points out that the market for high-end trophy hotels is still very strong, especially in the SoCal market, so he doesn’t see any negatives to the proposed sale. “The only question is how much of a discount will be needed as Anbang is looing to sell the entire portfolio, rather than single assets, which limits the buyer pool somewhat.” In an interesting twist, Reay says Blackstone will be one of the…

San Francisco Chronicle 08/28/18 L.A. Investor Could Buy Fourth Hotel on S.F.’s Nob Hill By Roland Li https://www.sfchronicle.com/business/article/L-A-investor-could-buy-fourth-hotel-on-S-F-s-13188883.php   A Los Angeles investor appears poised to buy the Huntington Hotel atop San Francisco’s Nob Hill, in what would be his firm’s fourth hotel acquisition in the neighborhood, according to state records. The potential buyer, Woodridge Capital Partners, previously purchased three of Nob Hill’s largest hotels — the Fairmont, Mark Hopkins and Stanford Court — which have more than 1,300 rooms combined. Woodridge, founded and run by Michael Rosenfeld, sold the Fairmont in 2015 and Mark Hopkins in 2017 for a hefty profit. A corporation called Mason Palms Ltd. applied last week for a state restaurant license at the 135-room Huntington. Rick Arambulo is listed as an officer of Mason Palms and is also president of Woodridge. Mason Palms previously applied for similar licenses for the Fairmont, Stanford Court and hotels in Southern California that Woodridge has purchased, strongly suggesting Woodridge is close to acquiring the Huntington as well. The Huntington’s owner, Grace International of Singapore, is currently in contract to sell the building, said a person familiar with the property who was not authorized to speak publicly about the transaction…

Santa Cruz Sentinel 08/27/18 Santa Cruz Hotels See Record Room Rates as Nearby Cities Ask for Higher Hotel Room Taxes By Jondi Gumz http://www.santacruzsentinel.com/article/NE/20180827/NEWS/180829727   Hotels and motels in the city are booming, with record year-to-date occupancy of 72 percent and average room rates reaching $200 for June and July, a first, according to STR, a data and analytics company that tracks the industry. Last year, hotels countywide tracked by STR tallied nearly $152 million in revenue, a steady upward trajectory from $107.7 million five years ago, and this year’s revenue is likely to increase. Alan Reay of Atlas Hospitality, which tracks hotel development and sales, reports that “2017 was a record-breaking year for California hotel development, and as we predicted, 2018 is on pace to eclipse it.” Despite the demand for overnight stays, it’s taking longer than expected to complete five new hotels planned or under construction. • Framing stands silently at the Coastview Hotel, 301 Beach St. in Beach Flats, where work has stopped. A neighbor said the city halted the project as lacking proper permits. Coastview owner Prakash Babu envisioned a white three-story Spanish colonial-style hotel with 24 balconies and a rooftop deck with a firepit overlooking…

Orange County Business Journal 08/27/18 Anaheim Isn’t Happiest Place for Developers By Paul Hughes http://www.ocbj.com/news/2018/aug/27/anaheim-isnt-happiest-place-developers/ A sizzling summer for Anaheim hotels is getting hotter in more ways than one. Room rates and occupancy levels are healthy, according to recent data from CBRE Hotels, and the city’s two largest trade shows officially re-upped at Anaheim Convention Center for several years apiece, according to destination marketer Visit Anaheim. However, a less welcoming city council and a November ballot measure linking a minimum hourly wage to hotel incentives are bringing simmering tensions to a boil. At stake is whether developers will pour $1.1 billion into three new hotels; two other projects valued at $550 million are already underway but could also be affected. Disneyland Resort said its part of the overall investment, a planned $625 million luxury hotel, is on hold and that it wants out of deals with the city covering bed and gate taxes. Other area hotel developers are also expressing doubts about their projects. To be sure, hotel development near the convention center and Disneyland remains strong and spreads to the rest of the city and neighboring areas. Anaheim has touted $4 billion in leisure and hospitality investments overall. Resort…

The Registry 08/21/18 Westin St. Francis Hotel in San Francisco Is Up for Sale By Jon Peterson https://news.theregistrysf.com/westin-st-francis-hotel-in-san-francisco-is-up-for-sale/   The Westin St. Francis Hotel in San Francisco is now on the market for sale. The property had been under the ownership of China-based Anbang Insurance Group. However, this was asset recently was taken over by the Chinese government as one of 15 hotel assets that the government is planning to sell. Anbang had acquired the Westin St. Francis as part of a $5.5 billion portfolio investment in 2016. The allocation price for the San Francisco hotel at the time was one billion dollars, according to published reports. The other properties in the portfolio included assets located in Manhattan, Chicago, Miami and Jackson Hole, Wyo. The sales price this time around will depend on how the property may be packaged for the new buyer, and if the hotel is sold by itself or as part of a portfolio. “In a portfolio sale, I would expect that the sales price would be somewhere around $1 billion for the St. Francis. If the property were to be sold by itself, that the price would go up by 10 percent to 15 percent, or…