Atlas in the news

L.A. County Hotel Sales Hit $1.7 Billion in 2017

San Fernando Business Journal 02/12/18 L.A. County Hotel Sales Hit $1.7 Billion in 2017 By Michael Aushenker http://sfvbj.com/news/2018/feb/12/l-county-hotel-sales-hit-17-billion-2017/ Los Angeles County hotel sales reached a record $1.7 billion in 2017, according to a year-end report by Irvine-based Atlas Hospitality Group, a real estate agency specializing in hotel sales. The figure amounts to $344 million more in overall sales than in 2016 — with $150 million of those sales taking place in the Valley region. In 2017, five hotels traded hands in the San Fernando Valley. In July, the 351-room Hilton Los Angeles North in Glendale sold for almost $73.5 million to Arcadia-based real estate development company Kam Sang Co. Inc. The price represented more than $209,000 per room. Also in the Valley, Paul P. Kuo sold North Hills-situated, 21-room Sepulveda Motel at 8931 Sepulveda Blvd. for $2 million in May. In July, Brighton Management purchased the 74-room Ramada in Chatsworth, located at 21340 Devonshire St., for $6.2 million from Chatsworth Investment Group. A month later, Wheelock Street Capital’s 262-room Hyatt Regency, at 880 S. Westlake Blvd. in Westlake Village, sold for $63 million to Southwest Value Partners Enterprises, followed last December by the sale of Encino’s 26-room Tokyo Princess Inn…

5 Things to Know: California Led 2017 Hotel Sales in US

HotelNewsNow 02/09/18 5 Things to Know: California Led 2017 Hotel Sales in US http://www.hotelnewsnow.com/Articles/272676/5-things-to-know-9-February-2018   California led 2017 hotel sales in U.S.: According to data gathered by Atlas Hospitality Group in its 2017 year-end California hotel sales survey, California executed the most individual sales transactions of any state with 369, which is a 14.6% increase from 2016. The state also set a record for median price per room at $106,496. Los Angeles County buoyed these numbers for the entire state, according to the survey. Atlas forecasts California will continue to attract capital from international investors, namely from the Asia/Pacific region. However, potential hindering factors such as rising labor costs, increasing interest rates and hotel supply could continue to be issues for hotel buyers and sellers, Atlas reported.

Don’t Let the Numbers Fool You — Silicon Valley Is a Hot Hospitality Market

Silicon Valley Business Journal 02/09/18 Don’t Let the Numbers Fool You — Silicon Valley Is a Hot Hospitality Market By Janice Bitters https://www.bizjournals.com/sanjose/news/2018/02/09/bay-area-silicon-valley-hotel-hospitality-market.html   When it comes to U.S. hotel sales, California — and particularly the Bay Area — generates the most money per transaction and per hotel room in America, but year over year, 2017 wasn’t its best year, according to new data released by Atlas Hospitality Group. In Santa Clara County, for instance, Irvine-based Atlas tracked 12 hotel sales in both 2016 and 2017, but noted the total dollar volume for sales in the county was down 23 percent last year while the average price per room dropped about 32 percent. The median price per room sank 27 percent last year. San Mateo County, meanwhile, saw about five hotel sales both years, but smaller, single-digit dips for overall dollar volume, which was down 4 percent, and average price per room, which decreased 5 percent. But Alan Reay, president at Atlas Hospitality Group, warns that the dips don’t paint a gloomy picture. When tracking so few sales in each county, averages may not tell the full story, he said. “I don’t think anyone we would talk to would think…

CitizenM Plans 315-room Boutique Hotel in Downtown

The Real Deal 02/08/18 CitizenM Plans 315-room Boutique Hotel in Downtown The announcement comes amid a hotel construction boom By Natalie Hoberman https://therealdeal.com/la/2018/02/08/citizenm-plans-315-room-boutique-hotel-in-downtown   Add another name to the flurry of hotel construction happening in Los Angeles. The Amsterdam-based citizenM hotel chain is expanding into Downtown Los Angeles, after the company paid $13.5 million for a 20,000-square-foot parking lot on the corner of 4th and Spring streets, the Los Angeles Business Journal reported. The seller was Pasadena-based System Property Development Co. BLVD Hospitality will develop the 11-story building. The HLW International-designed project will include 315 guest rooms and 81 parking spaces. In what is citizenM’s style, murals will be painted on all sides of the building. Michael Condon Jr. of Cushman and Wakefield represented the buyer. The Downtown location would be the second L.A. outpost for the hotel chain. The company is already under construction on a 14-story hotel at 1718 Vine Street in Hollywood. It’s slated to include 216 rooms, a workspace, bar, fitness center and outdoor deck. Other citizenM locations are in New York, San Francisco, Seattle, Paris, Shanghai and Copenhagen, Denmark. Hotel construction is on the rise in L.A. In the next few years, there will be…

L.A. County Hotel Sales Hits Record High of $1.67 Billion

Los Angeles Business Journal 02/08/18 L.A. County Hotel Sales Hits Record High of $1.67 Billion By Mark Anderson http://labusinessjournal.com/news/2018/feb/08/l-county-hotel-sales-hits-record-high-167-billion/   The total value of sales of Los Angeles County hotels hit a record of $1.67 billion last year, according to a new report from Irvine hotel brokerage Atlas Hospitality. That was an increase of 26 percent from 2016. The $280 million sale of the 286-room Jeremy hotel in West Hollywood in July was the most expensive. However the number of transactions in the county decreased 14 percent to 50 in 2017 from 58 in 2016.

Two Years After $60 Million Sale, Citizen Hotel on the Market Again

Sacramento Business Journal 02/09/18 Two Years After $60 Million Sale, Citizen Hotel on the Market Again By Mark Anderson https://www.bizjournals.com/sacramento/news/2018/02/09/two-years-after-60-million-sale-citizen-hotel-on.html   The Beverly Hills-based investment firm that bought the Citizen Hotel for $60 million just over two years ago has put the boutique property back on the market. No price is listed in the memorandum on the property by brokerage firm JLL’s San Francisco and Los Angeles offices. The hotel is owned by private equity firm Platinum Equity. The 196-room hotel at 10th and J streets downtown also features Grange Restaurant & Bar and 10,000 square feet of flexible meeting space. County records show Platinum paid $60 million for the hotel in September 2015, which was believed to be a record sale price for a Sacramento hotel at the time. And in the years since, the performance of Sacramento hotels has improved. Downtown hotels are generally considered attractive investments, and in major cities, hotel valuations have shot up in recent years, said Alan Reay, president of Atlas Hospitality Group, a brokerage in Irvine. “In San Francisco or Los Angeles, to break those deals loose, you have to pay a high, high price,” Reay said. That is why investors are going…

Hotel Sales Stable on No ‘Big Deal’

Orange County Business Journal 02/08/18 Hotel Sales Stable on No ‘Big Deal’ By Paul Hughes http://www.ocbj.com/news/2018/feb/08/hotel-sales-stable-no-big-deal/   OC hotels sold at a slightly lower rate for a markedly lower dollar volume last year—but results were affected by the lack of a trophy property sale in 2017, a survey by broker-consultant Atlas Hospitality Group in Irvine shows. Twenty-two local hotels sold last year for $485 million, down from 23 and $807 million in 2016, for a transaction decline of 4.6% and a volume drop of 40%. Average price and price-per room also declined. A big sale in 2016—the 396-room Ritz-Carlton, Laguna Niguel in Dana Point went for $366 million—accounts for the entire decline on the deal side and more than the $322 million on the dollar side. The Montage in Laguna Beach sold in the same deal as the Ritz when Blackstone Group LP moved more than a dozen properties to Anbang, a China-based insurer, for more than $6 billion. The two resorts skewed annual totals in 2015 as well when owner Strategic Hotels & Resorts sold both—acquired separately and nine years apart—to Blackstone. By contrast, last year’s priciest deal was $125 million paid for the 440-room Fairmont Hotel in Newport…

Debt Servicer Buys Second Disney-Area Hotel

Orange County Business Journal 02/07/18 Debt Servicer Buys Second Disney-Area Hotel By Paul Hughes http://www.ocbj.com/news/2018/feb/07/debt-servicer-buys-second-disney-area-hotel   An affiliate of CW Capital Asset Management LLC bought the Portofino Inn & Suites for $26 million, its second such deal in the last few years for the bad debt of a Disneyland Resort-area hotel. The Portofino is a $99-a-room hotel at Harbor Boulevard and Katella Avenue—walking distance from Disneyland and the Anaheim Convention Center. CW Capital bought the $36.1 million loan on the 190-room hotel last month. The $26 million price works out to $136,000 per room. In July 2013 it paid $36.2 million for the $65 million debt on the 490-room Sheraton Park Hotel, which works out to $74,000 a room. Sheraton is a convention center campus property previously owned by Northwest Hospitality Group, appraised for $56.4 million in 2016, and a two-minute walk from Portofino. Rooms start at about $200. CW Capital is a Maryland-based special servicer of debt. Its website says it’s “actively servicing” $7.6 billion on 380 loans, has “resolved” $55.9 billion in loans since 2007, and has $99 billion in CMBS loans under management. Portofino was part of one such commercial mortgage-backed securities deal; owner SDRP I LLC…

Portofino Hotel Near Disneyland and Convention Center Sells for $26M

Bisnow 02/05/18 Portofino Hotel Near Disneyland and Convention Center Sells for $26M By Joseph Pimentel https://www.bisnow.com/orange-county/news/hotel/portofino-hotel-near-disneyland-and-convention-center-sold-in-anaheim-for-26m-84563   The owner of a 190-room hotel near Disneyland defaulted on its loan and later sold to CW Capital Asset Management, a Maryland-based limited liability company, for $26M. Built in 1978, the Portofino Inn & Suites hotel at 1831 South Harbor Blvd. sits in the middle of Anaheim’s resort district, just one block away from the Disneyland Resort and the Anaheim Convention Center. SDRP I LLC owned the property’s ground lease and structures on the land. SDRP I LLC defaulted on a $36.33M bank loan, according to CoStar. When the company could not pay the unpaid balance on the principal in May, a trustee sale was conducted rather than a bank foreclosure, CoStar reports. SDRP I LLC officials could not be reached for comment. Irvine-based Atlas Hospitality Group President Alan Reay said the sale is not a reflection of the hospitality market in the area being depressed. It was a reflection of the debt structure, he said. Reay said the ground lease was on a commercial mortgage-backed securities loan that matured in 2017. The lender had tried to sell the loan and the owner…

China’s Greenland Puts Downtown LA Indigo on the Market

Hotel Management 02/02/18 China’s Greenland Puts Downtown LA Indigo on the Market by Jena Tesse Fox https://www.hotelmanagement.net/transactions/china-s-greenland-puts-downtown-la-indigo-market That didn’t take long. Less than a year after opening in Los Angeles’ downtown neighborhood—and signaling a shift for the area—the Hotel Indigo is on the market. Developer Greenland USA, a subsidiary of the Shanghai-based property development firm Greenland Group, is reportedly asking $280 million for the 350-guestroom property for an average price of $800,000 per key. Reports suggest the hotel’s construction at around $600,000 per room or more. If the target price is reached, the deal would set a new record price on a per-room basis for a downtown Los Angeles hotel. China’s Crackdown This deal would be only the latest to stem from China’s crackdown on outbound investment in overseas real estate. Companies such as Anbang Insurance Group, Dalian Wanda, Fosun International and HNA Group have all made large, debt-fueled investments in the U.S. hotel sector. According to JLL, with $9.8 billion spent, investors from mainland China were the largest source of outbound capital into hotels in 2016. Across all investment classes, Chinese foreign direct investment in the U.S. totaled $45.6 billion in 2016. In August, China formally implemented measures to…

Thousands of New Hotel Rooms Expected to Open in LA County Won’t: Report

The Real Deal 01/30/18 Thousands of New Hotel Rooms Expected to Open in LA County Won’t: Report Atlas Hospitality estimates 10,000 of the 33,000 rooms planned will actually get built https://therealdeal.com/la/2018/01/30/thousands-of-new-hotel-rooms-expected-to-open-in-la-county-wont-report/   Around 10,000 hotel rooms are expected to come online in Los Angeles County over the next few years, according to a new report, part of what is projected to be a record-setting period of development across the state. That flood of new hotel construction still represents a conservative estimate of the total number of rooms that developers are proposing. In 2017, developers laid out plans to open 33,500 hotel rooms over the next few years in Los Angeles alone. The report from Atlas Hospitality Group estimates that, given historical data, the number will be closer to the 10,000 mark, Atlas President Alan Reay told the Los Angeles Business Journal. Still, that is a extraordinary pace of building. This year is expected to beat out any previous year on record, including 2017’s historic high for hotel rooms. Nearly 10,800 hotel rooms opened across the state last year, or 500 more than the previous record set in 2008. LA County led with 4,300 new hotel rooms, thanks in part to…

Little Change in Meeting Space Last Year, Lots in Focus

Orange County Business Journal 01/29/18 Little Change in Meeting Space Last Year, Lots in Focus Events Digs Make Splash as SF Up 2.1% By Paul Hughes https://www.ocbj.com/news/2018/jan/29/little-change-meeting-space-last-year-lots-focus/   Meeting space is what the community of business is, at least for the 52 hotels on this week’s list. The properties combine for 1.34 million square feet of it, an average of 26,000 apiece, from 140,000 square feet at top-ranked Hilton Anaheim to 6,263 square feet at No. 52, The Ranch at Laguna Beach. The minimum for inclusion this year was 6,000 square feet. Ranked hotels’ increased meeting space square footage by over 26,000 last year, or 2.1%. Orange County added six hotels with 960 rooms, according to Atlas Hospitality Group in Irvine, but most were smaller, select-service or extended-stay properties of fewer than 200 rooms, such as the unranked Hyatt House Irvine, at 149, and AC Hotel Irvine, with 176. Those types of sites have smaller event areas, and travelers here for short-term projects go elsewhere. Notable Steps It’s rare to see big changes in meeting space. • Even a second tower at No. 21, The Waterfront Beach Resort—the opening didn’t make our December deadline but is imminent—would’ve added “only” about…

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