Atlas in the news

Los Angeles Times 10/24/16 Park Hyatt Hotel Is Set to Join the Downtown L.A. Building Boom By Andrew Khouri http://www.latimes.com/business/la-fi-downtown-hyatt-20161024-snap-story.html   The $1-billion Oceanwide Plaza development, under construction in downtown Los Angeles, will include a luxury Park Hyatt hotel, underscoring the resurgence of the city center. The Hyatt Hotels Corp. brand is in just 38 locations worldwide and currently has no locations in Los Angeles. Its arrival across from Staples Center could help the Oceanwide condo and hotel project stand out in a neighborhood awash in construction. Nearby, Chinese developer Greenland Group is underway on another $1-billion condo and hotel project known as Metropolis that will include a 350-room Hotel Indigo, a hip boutique brand operated by InterContinental Hotels Group. Other big projects include a 900-room InterContinental hotel inside the nearly completed Wilshire Grand skyscraper and a proposal for a W Hotel that would replace the Luxe City Center Hotel across from L.A. Live. “Every major hotel brand needs to have a presence downtown,” said Alan X. Reay, president of Atlas Hospitality Group. “Fifteen to 20 years ago people were exiting downtown. It’s sort of night and day.” Beijing-based Oceanwide Holdings and Hyatt announced their plans Monday. The 184-room Park…

Orange County Register 10/24/16 Veteran Hotel Developers Talk Building Boom, Under Demolished and Overbuilt Areas By Hannah Madans http://www.ocregister.com/articles/olson-733128-hotel-hotels.html   More public spaces. Catering to international visitors. Hotels with local flair. Those are just a few trends veteran developer Bob Olson is seeing in the hotel industry. He owns Irvine-based R.D. Olson Construction and Newport Beach-based R.D. Olson Development, both of which are juggling half a dozen hotel projects in an industry seeing years of growth after the Great Recession. Hotel expansion in Orange County is ongoing, as developers (in addition to Olson) build out 10 new hotels, which will add 1,504 rooms to the marketplace. Six hotels already have opened this year, according to Irvine-based Atlas Hospitality Group. “There are markets that are getting overbuilt,” Olson said. “The losers in those markets will be the old hotels. It’s not that we’ll be overbuilt – we’ll be under-demolished.” Alan Reay, president of the Irvine-based real estate company Atlas Hospitality Group, agrees. “Year-to-date hotel rooms under construction for the U.S. are up almost 30 percent from where they were last year,” Reay said. “A lot of people are worried that we’re building too many hotel rooms. “It’s really a big threat…

Bisnow 10/19/16 Hospitality Is Booming in LA By Karen Jordan https://www.bisnow.com/los-angeles/news/commercial-real-estate/hospitality-booming-in-la-66557   Other industry leaders scheduled to speak include the Athens Group COO Jay Newman, LA Department of Convention & Tourism Development executive developer Robert Ovrom, Steinberg president and CEO David Hart, PCL Construction VP and district manager Jack Sample, and Atlas Hospitality Group president Alan Reay. There will also be a “fireside chat” with Two Roads Hospitality co-chairman Rob Lowe. Join us for Bisnow’s fourth annual LA Hospitality Development Boom event, starting at 7:30am tomorrow. The hospitality business is hot in LA. Some heavy hitters are lined up to discuss the industry and trends at Bisnow’s fourth annual LA Hospitality Development Boom event tomorrow at the Omni Hotel in downtown LA. Ollie regional director of business development Ellen Parry tells Bisnow Ollie is specifically focused on improving traditional rental offerings with “strengthened community engagement” and “high-impact services” for its residents. The firm also is committed to studying the pain points urban residents face, namely affordability and convenience, she says. Ollie then identifies ways to address them through hospitality efforts and density planning, Ellen says.

Sacramento Business Journal 10/06/16 Motel Operators Coming to the End of the Road By Mark Anderson http://www.bizjournals.com/sacramento/news/2016/10/06/cover-story-motel-operators-coming-to-the-end-of.html   Like a skeleton of the old highway system, many aging motels mark where main roads existed 60 years ago. Many of the motels continue operating more than a half-century after the freeways moved elsewhere. And even without the traffic they once received, many of these small, old properties continue to generate cash flow. They provide their operators, many of whom are families, with homes and steady income… Family businesses at the brink Motels often provide both a place to live and a livelihood for their owners, so they are often not very interested in selling, even for a strong profit, said Alan Reay, president of Atlas Hospitality Group, a hotel brokerage based in Irvine. The motel business is not highly profitable — and it is definitely not glamorous — but it is a living, he said. And motels are often so small that they need to be family operations, Reay said. “They cannot pencil out with professional staff.” In the next few years, the pressure on these motels may finally push them past the brink. “These old buildings are now getting very…

Bisnow 10/05/16 Weighing Hospitality Development in LA By Karen Jordan https://www.bisnow.com/los-angeles/news/hotel/weighing-hospitality-development-in-la-66018   The hospitality market in LA is booming. With tourism on the rise and an increasing number of hotels being built, the future is looking bright for the hospitality industry, which will be the focus of Bisnow’s fourth annual LA Hospitality Development Boom event Oct. 20. LA had a record high of 45.5 million overnight and day visitors last year, up 2.8% over the previous year, according to the LA Tourism and Convention Board. Two Roads Hospitality co-chairman Rob Lowe (above) will deliver the opening remarks at this year’s event. The Athens Group COO Jay Newman, LA Department of Convention and Tourism Development executive developer Robert Ovrom, Steinberg president and CEO David Hart, and PCL Construction VP and district manager Jack Sample will be on hand to talk about how local development is booming. Atlas Hospitality Group President Alan Reay and Ollie regional director of business development Ellen Parry are scheduled to discuss trends in lodging, including what companies are doing to raise their profiles. Join us for Bisnow’s fourth annual LA Hospitality Development Boom event, starting at 7:30am Oct. 20. Event Information

Los Angeles Times 09/03/16 Dual-Branded Hotels Are Multiplying in Southern California By Hugo Martin http://www.latimes.com/business/la-fi-travel-briefcase-dual-hotels-20160903-snap-story.html   In downtown Los Angeles, the latest hotel trend is visible near the L.A. Live entertainment complex. On one side of West Olympic Boulevard stands the JW Marriott/Ritz Carlton hotel. On the other side looms the Courtyard/Residence Inn hotel. Over the last few years, major hotel companies have learned that combining two hotel brands into the same building saves on operating costs and staffing, while giving guests a choice between hotels with different nightly rates and amenities. “Five or 10 years ago we never even heard of it,” said Alan X. Reay, a hotel consultant with Atlas Hospitality. “Now we are seeing more and more of it.” A Residence Inn/SpringHill Suites combination opened in San Diego in February. Hotel giant Marriott International is planning to build five other dual-branded hotels in Los Angeles, Thousand Oaks and Santa Clarita in the next four years. “The pace of the growth is by virtue of the fact that this trend offers lots of benefits to developers and consumers,” said Tony Capuano, executive vice president and chief development officer at Marriott International. Most of these hotels combine brands held…

Silicon Valley Business Journal 08/31/16 Unfamiliar Hotel Brand Coming to Santa Clara Near Levi’s Stadium By Bryce Druzin http://www.bizjournals.com/sanjose/news/2016/08/31/unfamiliar-hotel-brand-coming-to-santa-clara-near.html Santa Clara’s high hotel occupancy rate is caused by “tremendous demand and room shortages,” according to hotel expert Alan X. Reay.

HotelNewsNow 09/01/16 California Hotel Sales Drop Severely After Record Year By Sean McCracken http://www.hotelnewsnow.com/Articles/67458/California-hotel-sales-drop-severely-after-record-year   REPORT FROM THE U.S.—Hoteliers across the state of California have seen a steep drop-off in transactions through the first half of 2016 after a record-shattering 2015, according to research from Atlas Hospitality Group. Alan Reay, president of Atlas, said a combination of three factors led to a 56% year-over-year decline in total-dollar-volume transactions: Tough numbers to compare to in 2015, a first quarter stock market slowdown and a shift in pricing leading to a gap between buyers’ and sellers’ expectations. “The first quarter was very, very ugly in terms of transactions, and people didn’t know what direction the market was heading,” Reay said. “The second quarter picked up again, but if anything sums up the first six months, it’s that buyers were very cautious.” In addition to the drop in dollar volume, California saw a 17% drop in individual transactions. The drop looked even bleaker in just the first quarter, when dollar volume fell 60% and transactions fell 42% Reay said inactions by real estate investment trusts and a corresponding dip in portfolio sales played a big part in the numbers falling. “REITs’ stocks plummeted…

San Fernando Valley Business Journal 08/22/16 Hotels Rising in Antelope Valley By Helen Floersh http://www.sfvbj.com/news/2016/aug/22/hotels-rising-antelope-valley/

The Daily Transcript 08/19/16 Developers Bringing Trio of Branded Hotels to Liberty Station By Thor Kamban Biberman     Three more branded hotels, totaling 650 rooms, will soon be developed across the ship channel from the main part of Liberty Station. The hotels will consist of a 181-room Hampton Inn & Suites, a 222-room Marriott Town Place, and a 247-room Embassy Suites. The hotels, which are located at 2200 Lee Court, are being co-developed by the Corky McMillin Cos. and InterMountain Management of Monroe, La. Seattle-based Degen & Degen Architecture and Interior Design is designing the project. Vancouver-based Ledcor is the general contractor for the three-hotel complex. Plans originally called for a one 600-room hotel at the location. The Nickelodeon cable channel had put forth a brightly colored hotel in one proposal. That plan was abandoned in 2009 in the face of both the recession and opposition to the design. As was the case with Lane Field North, the developers decided to go with multiple brands. In this case, however, the hotels aren’t physically attached. They only will share a 3,800-square-foot restaurant space. Joe Haeussler, McMillin executive vice president, said these hotels will be top of the line in their…

HotelNewsNow 08/18/16 5 Things to Know: California Hotel Pricing Climbing Up, but Pace Down By the HNN editorial staff http://www.hotelnewsnow.com/Articles/64369/5-things-to-know-18-August-2016 California hotel pricing climbing up, but pace down: Atlas Hospitality Group released its “2016 Mid-Year California Hotel Sales Survey,” which shows that sales were off in the first quarter of 2016. Total dollar volume fell 56% for the first half of the year compared to the same period in 2015, and individual transactions were down 17%. Hotel sales values in California climbed in the first half, though, and the median price per room increased 11.3%. This was off from the record-breaking growth pace of 2015, which had a median price per room increase of 25%. Atlas reports that buyers’ attitudes can be summarized as “cautious,” so far this year because there are concerns that hotel values have peaked.

Bisnow 08/16/16 Hotel Sales Slowing, Mid-Year Hotel Survey Reveals By Patricia Kirk https://www.bisnow.com/san-diego/news/hotel/hotel-sales-slowing-mid-year-hotel-survey-reveals-64086   Irvine, CA-based Atlas Hospitality Group’s 2016 Mid-Year California Hotel Sales Survey recorded a 38% decrease in hotel sales in San Diego County during the first half of the year, compared to sales during the same period in 2015. Total dollar sales volume dropped 65% to $242.1M, down from $696.6M from the previous year. Overall, California hotel transactions dropped 17% during the first half of 2016, from 174 sales in 2015 to 144, while sales dollar volume dropped 56.2%, from $4.4B to $1.9B. The largest hotel sold in San Diego County during the first half of 2016 was the 350‐room Marriott San Diego Mission Valley. The most expensive sale was $80.5M for the 284‐room San Diego Marriott Del Mar, or $281,700/room. The average price paid per room during the first half of 2016 declined 16%, but the median price per room rose 23%. In July, however, the 372-key San Diego Marriott La Jolla (pictured) in University Town Center sold to NY-based Carey Watermark Investors 2, a real estate investment trust, for $131M, or $353,200/room. California hotel sales values continued to climb during the first half of 2016,…