Atlas in the news

San Diego Business Journal 07/28/16 Hotel Boom Propels Variety of Projects By Lou Hirsh http://www.sdbj.com/news/2016/jul/28/hotel-boom-propels-variety-projects/   San Diego — Developers of Pendry San Diego, a new $100 million luxury hotel set to open this November in the Gaslamp Quarter, say they’re not worried that other posh competitors have also set their sights on downtown San Diego. Co-developers Alan Fuerstman, CEO of Irvine-headquartered Montage Hotels & Resorts, and Robert Green of Encinitas maintain their 317-room hotel — with several public venues including an upscale, seafood-oriented restaurant and bar called Lionfish — will draw a steady crowd of visitors and locals to the vibrant Gaslamp neighborhood. “We think there’s a big market out there for projects where design meets service meets hospitality,” said Alan’s son Michael Fuerstman, co-founder of Montage Hotels and creative director for the new Pendry brand, during a recent preview for the hotel. Operators will eventually be up against a 400-room luxury InterContinental Hotel, whose developers recently started construction at the downtown waterfront site of the former Lane Field ballpark; and a 153-room Ritz-Carlton being planned for a mixed-use development in the works in nearby East Village, just a few blocks from the new Pendry. Not Just Luxury Brands…

Bisnow 08/01/16 OC Adds Most Hotel Rooms By Karen Jordan https://www.bisnow.com/orange-county/news/hotel/oc-adds-highest-number-of-hotel-rooms-63367   Good news for the OC: during the first six months of this year, the county added more hotel rooms than any other county in California. Orange County added 1,100 hotel rooms from January through last month, according to a recent mid-year survey by Irvine’s Atlas Hospitality Group. While 8,500 more hotel rooms are under construction or planned, other counties rank higher when it comes to delivering new hotel rooms, the Orange County Business Journal reports. Compared to Orange County, LA County opened only 326 hotel rooms in the first six months of 2016. However, in LA, almost 26,600 rooms are planned or under construction.

Orange County Register 07/29/16 Is O.C. Building Too Many Hotels? 5 Things to Know By Jonathan Lansner http://www.ocregister.com/articles/hotels-724068-hotel-room.html   Orange County hotels: Too much new stuff? A hotel building boom is underway, but that development raises questions as to whether there’s enough tourism business to keep local hotels profitable. Here are questions to ponder: 1. How much is being built? Orange County added more new rooms in 2016’s first half than any other California market, says a new report from the hotel trackers at Atlas Hospitality Group in Irvine. Orange County has 1,078 new rooms at four hotels: the 603-room Great Wolf Lodge in Garden Grove; 250-room Pasea Hotel & Spa in Huntington Beach; 129-room Homewood Suites in Aliso Viejo; and the 96-room Holiday Inn Express in Anaheim. That’s not all. Atlas says Orange County has 12 hotels with 2,089 rooms under construction, topped by the 274-room Residence Inn in Anaheim. Plus, Orange County has 31 hotels with 6,385 rooms in planning. 2. Is that odd? Orange County isn’t unique. A hot tourism market has lured numerous developers into hotel building. Nationwide, 1,259 hotel projects are underway, representing a year-over-year increase of 27 percent in the number of new rooms…

Los Angeles Business Journal 07/29/16 Convention Center Demand Sparks Plans for 1,100-Room Hotel By Daina Beth Solomon http://www.labusinessjournal.com/news/2016/jul/29/convention-center-demand-sparks-plans-1100-room-ho/   Lightstone Group is moving forward with plans to build a $450 million hotel with 1,100 rooms across from the Convention Center. The New York developer recently submitted its application to city planners for a Gensler-designed project of two towers, one of 40 stories and the other of 28, which would be run by three hotel brands. Dubbed Fig+Pico for its spot on the corner of Figueroa Street and Pico Boulevard, the hotel is slated to include six levels of parking, 20,000 square feet of retail, three pools, bars, and restaurants. “We think there is a great demand for hotel rooms downtown today,” said Mitchell Hochberg, president of Lightstone. “When the Convention Center expansion is finally built, that demand will increase.” L.A. city officials began working on Convention Center expansion plans last year after learning that downtown would not become home to a new football stadium. Officials last summer selected architects to design increased meeting and exhibition space and add a 1,000-room hotel at a cost of $470 million. Then, early this year, the city began considering a new proposal that would…

Orange County Business Journal 07/27/16 OC Adds Most New Hotel Rooms By Paul Hughes http://www.ocbj.com/news/2016/jul/27/oc-adds-most-new-hotel-rooms/   Orange County opened more new hotel rooms in the first six months of 2016 than any county in California but its future pace will give way to other areas, according to a recent report. Some 1,100 hotel rooms were added to local inventory through June; some 8,500 more rooms are under construction or in planning, Atlas Hospitality Group in Irvine said. The hotel consultant and broker’s mid-year survey of hotel development showed other areas will overtake OC in delivery of new rooms. • Los Angeles County opened only 326 hotel rooms in the first six months of the year but it has nearly 26,600 under construction or in planning. • San Diego County opened 1,017 rooms year-to-date through June and has 11,400 rooms under construction or in planning. • Riverside and San Bernardino Counties opened no new rooms in the first half of the year and together have 11,655 rooms under construction or in planning. The Southern California market overall added 2,421 hotel rooms in the first six months of the year and has 58,100 rooms under construction or in planning. The statewide report…

The San Diego Union-Tribune 07/26/16 Marriott La Jolla Sale Tops in County By Lori Weisberg http://www.sandiegouniontribune.com/news/2016/jul/26/marriott-lajolla-sold-priciest-san-diego-county/   The 372-room San Diego Marriott La Jolla has been sold for nearly $131 million, making it the single largest hotel sale in the county so far this year. Purchasing the property, in the University Town Center area, was New York-based Carey Watermark Investors 2 Inc., a real estate investment trust that has recently been on a hotel buying spree. In addition to the Marriott La Jolla, it purchased two other Marriotts this year — in San Jose and the Seattle area — plus an Embassy Suites late last year in downtown Denver. That same year, it also acquired a majority interest in a Ritz Carlton in Miami. Not only was the sale the highest in San Diego, but it was the third priciest in California, right behind the San Jose Marriott, according to Orange County-based Atlas Hospitality. The $130.9 million sales price was not disclosed by the buyer but is based on the deed recorded by the San Diego County Recorder’s office. The La Jolla hotel last changed hands in 2011 when the most recent owner, HEI Hotels and Resorts, purchased it for…

Orange County Register 07/17/16 5 Worrisome Things in Anaheim’s Hotel Deal By Jonathan Lansner http://www.ocregister.com/articles/hotel-722597-luxury-tax.html The city of Anaheim is betting on luxury hotels. Last week, city leaders approved a deal that will see Walt Disney Co. and developer Wincome Group get roughly a half-billion dollars in tax breaks over two decades to construct three, four-star-rated luxury hotels near Disneyland and the convention center. That comes on top of a previous deal to help build another luxury hotel in the resort area. The timing night seem ideal. Empty hotel rooms are scarce, rates are rising. Disney’s spending big bucks on another Disneyland upgrade, Star Wars Land. But mistakes are often made when bets are placed amid a white-hot market. Depending on your view, the planned rebates of hotel bed taxes on these luxury projects is seen as a corporate giveaway or a public-private partnership to boost the city’s outsized tourism industry. Deal supporters claim a shortage of top-flight lodging options in the city hurts its tourism and convention business. Gee, I didn’t know the coastal resorts were so far away! “A huge win for the city’s hotel and visitor industry,” says Jay Burress, chief executive of the Visit Anaheim visitors…

Orange County Register 07/10/16 Historic Hotels in O.C. Coast Cities Are Thriving by Offering Cozy, Personalized Experiences By Hannah Madans http://www.ocregister.com/articles/beach-722021-hotel-hotels.html   Perched above the sand in Laguna Beach is the Laguna Riviera Beach Resort, a blink-and-you-miss-it hotel known for its whimsical murals and history of celebrity clients. The family-owned hotel opened in 1948. Guests in its heyday included Richard Nixon, author Pearl S. Buck, and Bill Hanna and Joe Barbera, creators of “The Flintstones.” The Riviera is the last of its kind in the area, still owned by its builder’s family, says owner Kort Pearson. The 41-room hotel, which was built by Pearson’s grandfather Harry Willats, has seen additions and improvements over the years, but Pearson says the property has “stayed true to its roots.” Kitchens, installed in 1948 just in case the hotel converted to apartments, remain in many of the rooms. Longtime customers include Phoenix resident Bruce Levitta and his family. They’ve been regulars for more than 50 years. “We go for the tradition,” Levitta says. “I would almost feel guilty staying somewhere else.” Nearly 70 years ago, the Riviera’s room rate was around $10. That’s $99 today when adjusted for inflation. Guests now pay between $149…

The Orange County Register 07/07/16 Anaheim Considers Tax Incentives for Three Luxury Hotels Near Disneyland By Joseph Pimental http://www.ocregister.com/articles/anaheim-721842-city-hotel.html   ANAHEIM – The City Council on Tuesday will consider tax incentives reimbursing developers some $560 million over 20 years for building three luxury hotels in Anaheim’s resort district, including one at Disneyland. City leaders said the hotels would help Anaheim attract higher-end visitors and conventions to stay and play in a city that offers Disneyland, Angel Stadium, Honda Center and the Packing House. Average nightly rates of $300 would mean double the tax revenue collected from lower-end properties, they said, and the new luxury hotels would add 2,000 jobs. But an industry expert echoes the city’s mayor in questioning whether the market is there for luxury accommodations and whether developers need incentives to realize the business opportunity. The three hotel projects would be the first ones to take advantage of a policy the council approved in a 3-2 vote last year to encourage the construction of hotels that meet AAA’s four-diamond rating by offering to reimburse developers for 20 years 70 percent of the transient occupancy tax collected from guests. Guests pay a 15 percent bed tax. After the 20…

East Bay Times 07/07/16 High-rise Hotel Proposed for San Jose By George Avalos http://www.eastbaytimes.com/breaking-news/ci_30102495/high-rise-hotel-proposed-san-jose   SAN JOSE — In a fresh indicator of the region’s bustling economy, a hotel that would be one of San Jose’s tallest buildings is being considered for a site north of downtown. The planned 24-story hotel would be built on North Fourth Street just west of the interchange of Highway 101 and Interstate 880, not far from Mineta San Jose International Airport. The proposal, by veteran developer Barry Swenson Builder, is a new indication that realty companies are confident the employment boom and the economy in Silicon Valley have solid staying power. “As bad as things were in 2009 and 2010, things have come way back for the hotel market in Silicon Valley,” said Alan Reay, president of Atlas Hospitality Group, which tracks the hotel market. Swenson filed a preliminary application near the end of June with San Jose city planners. “We’re just trying to get some initial feedback on height and density and what the city would like to see there,” said Bill Ryan, senior vice president for development. Plenty of possible hazards confront the project. If the job market sours and the economy…

Southern California Public Radio (SCPR) / 89.3 KPCC 06/06/16 In This Sizzling Hot Real Estate Market, Should a Downtown Developer Get Tax Breaks? By Ben Bergman http://www.scpr.org/news/2016/06/06/61382/in-this-sizzling-hot-real-estate-market-should-a-d/   Despite a sizzling hot real estate market in downtown Los Angeles, the L.A. City Council has voted to give almost $200 million worth of loans and tax subsidies to a developer building a four-star hotel complex on the long-stalled Grand Avenue project. The beneficiary of the city’s largess is Related California, which as part of the deal will get to keep half of the sales tax revenue generated by the project over the next 25 years – tens of millions of dollars that would normally flow into the city’s general fund to pay for police, street maintenance and other services. The council unanimously approved the package on Friday. This sort of aid isn’t unusual, but that doesn’t mean it always works out for cities, according to Alan Reay, president of Irvine-based Atlas Hospitality Group. “Typically it’s a great deal for the developer – I’m not sure it’s a great deal for the city,” says Reay. “I’ve seen areas where it’s worked really well and I’ve seen areas where it’s worked terribly.” The…