Atlas in the news
Hotel Sales Flat, Values Way Up
The San Diego Union-Tribune 02/29/16 Hotel Sales Flat, Values Way Up By Lori Weisberg http://www.sandiegouniontribune.com/news/2016/feb/29/hotel-sales-down-california-values-rising/ The pace of hotel acquisitions last year may have slowed statewide, but the prices investors were willing to pay for established properties rose significantly, contributing to a record $9.5 billion in sales in California. The rising value of lodging real estate was especially evident in Southern California, which saw the number of hotel transactions drop by 9 percent compared to 2014 at the same time that the sales volume — $5.4 billion — soared by 69 percent, reported Atlas Hospitality Group, an Orange County-based brokerage that tracks hotel transactions throughout California…
Development in Platinum Triangle Urbanizing Anaheim’s Core
Bisnow 02/29/16 Development in Platinum Triangle Urbanizing Anaheim’s Core By Patricia Kirk https://www.bisnow.com/orange-county/news/mixed-use/development-in-platinum-triangle-urbanizing-anaheims-core-56641 The Development Panel at Bisnow’s recent Orange County State of the Market event focused on projects in Anaheim, which rezoned an 820-acre industrial district in 2004 to what is now known as the Platinum Triangle to allow high-rise residential and mixed-use development. Developers are expected to pour $1.2B into projects here over the next decade, including a $500M mixed-used development adjacent to the stadium by China-based LT Global Investment, a subsidiary of Beijing developer Lerthai Commercial Real Estate Group. At build-out, this dense district is expected to have 28,000 residents, 19,000 apartments and condos, 14M SF of office space, and 4.7M SF of retail and hotel space. Our panel moderator, locally based Place Works chair/president Randy Jackson (pictured), who created Anaheim’s master plan, opened the discussion by asking national multifamily developer JPI/TDI Cos VP Patrick Pine why his company is developing in Anaheim and what he thinks about OC’s multifamily market going forward. The panel included Alan Reay, Randy Jefferson, Patrick Pine and Anaheim Mayor Tom Tait. Unemployment in OC is about 4%, and the Platinum Triangle is a strategic location with dynamic rent growth due…
Hotel Sales Dollars Doubled in 2015
Orange County Business Journal 02/25/16 Hotel Sales Dollars Doubled in 2015 By Paul Hughes http://www.ocbj.com/news/2016/feb/25/hotel-sales-dollars-doubled-2015/ Fewer hotels sold for more money last year in Orange County. Twenty-seven hotels sold in 2015—down by three properties from 2014—but they traded hands for $1.75 billion—up 115% from the previous year’s $816 million, according to numbers from Irvine-based Atlas Hospitality Group. Atlas said 2016 sales volume will fall about 25% from 2015 numbers as larger buyers pull back from the market and more hotels are available for purchase. The consultant and broker said financing would increase by up to 1 percentage point and it expects the median price per room to decline by up to 10%. The median price per room in Orange County last year was $135,000, an increase of about 12%. The average price per room was $271,000, up 64%. The $426 million deal for the Ritz‐Carlton, Laguna Niguel in Dana Point was the priciest local hotel buy in 2015. Orange County’s total dollar volume in 2015 was 18% of California’s $9.5 billion in hotel sales. “By any measure … it was a record‐breaking year,” Atlas said.
San Diego Region Experiencing Hotel Boom
Bisnow 02/25/16 San Diego Region Experiencing Hotel Boom By Patricia Kirk https://www.bisnow.com/san-diego/news/hotel/san-diego-region-experiencing-hotel-boom-56471 Six hotels totaling 711 new rooms were completed in San Diego County in 2015, a 115% increase in supply from 2014, according to a hotel development report from Irvine-based Atlas Hospitality Group. Additionally, about 2,000 rooms are under construction throughout the region, and 48 hotels with nearly 11,500 rooms are in the pipeline. The 179-room Hilton Garden Inn Old Town San Diego (above) was the largest new hotel that opened last year, and the largest hotel under construction is the 317-room Pendry San Diego in Downtown’s Gaslamp Quarter, according to NBC-San Diego. Atlas Hospitality Group president Alan Reay says California’s hotel market is very healthy, with increases in RevPAR and many hotels opening over the last two years operating at or exceeding forecast budgets. The big concern is whether there’s overbuilding, though Atlas doesn’t believe that’s the case, since there was a dearth of new hotel rooms built from 2009 to 2013, Alan says. Atlas also reports hotel values in 2015 exceeded record highs of 2006-2007, causing developers to re-enter the market. As a result, 34 hotels with about 4,400 rooms were completed throughout the state in…
Pacifica Hotels Purchases Resort in Cambria
The Orange County Register 02/25/16 Pacifica Hotels Purchases Resort in Cambria By Hannah Madans http://www.ocregister.com/articles/pacifica-705718-hotel-resort.html Irvine-based Pacifica Hotels has acquired the San Simeon Pines Seaside Resort in Cambria for an undisclosed sum. San Simeon Pines is located in central California near Hearst Castle and local wineries. The resort includes a private beach trail. The 9-acre resort has 60 guest rooms, a solar heated pool and is just steps from Moonstone Beach. It was originally built in 1959. Adam Marquis, executive vice president of Pacifica, said there will be guest room renovations in the spring. Alan Reay, president of Irvine-based real estate firm Atlas Hospitality Group said he expected Pacifica to “do a massive upgrade.” The group, he said, “controls most of the hotel product on Moonstone Beach in Cambria.” It’s been a busy year for Pacifica. In January the group acquired The Milner Hotel in downtown Los Angeles for an undisclosed price. Reay said the hotel would likely undergo major renovations and be converted to Pacifica’s Wayfarer brand. Wayfarer offers both hotel-style and dorm-style rooms with common areas. There is a Wayfarer in Santa Barbara. Pacifica owns and operates six properties on Cambria’s Moonstone Beach and a total of…
San Diego Firm Buys La Jolla Inn Hotel for $7.1 Million
San Diego Business Journal 02/22/16 San Diego Firm Buys La Jolla Inn Hotel for $7.1 Million By Lou Hirsh http://sdbj.com/news/2016/feb/22/san-diego-firm-buys-la-jolla-inn-hotel-71-million/ Oceanic Cos. of San Diego has purchased the 23-room La Jolla Inn hotel in La Jolla for $7.1 million, according to CoStar Group and brokerage firm Atlas Hospitality Group. The seller was Interstate Holdings Inc. of San Diego. The hotel was built in 1947 at 1110 Prospect St. and has since been renovated. Atlas Hospitality Group’s Oliver Shah and Sachin Shah represented the buyer, and Oliver Shah also represented the seller.
San Diego County Continues to Boost Hotel Room Supply
San Diego Business Journal 02/22/16 San Diego County Continues to Boost Hotel Room Supply By Lou Hirsh http://sdbj.com/news/2016/feb/22/san-diego-county-continues-boost-hotel-room-supply/ San Diego County added 711 hotel rooms at six new properties in 2015, up 115 percent from new supply added in 2014, according to hotel brokerage and research firm Atlas Hospitality Group. In a newly released California development report, Irvine-based Atlas said the local region had 1,091 rooms under construction at the end of 2015. San Diego County has 48 hotels and 11,157 rooms in various stages of planning. The largest local hotel to open in 2015 was the 179-room Hilton Garden Inn Old Town San Diego. The largest currently under construction is the 317-room Pendry San Diego, in downtown’s Gaslamp Quarter. Atlas Hospitality Group President Alan Reay said California continues to see “very healthy” increases in revenue per available room (RevPAR), with many of the hotels opened in 2014 and 2015 operating at or exceeding forecasted budgets. “The big concern is whether we’re now overbuilding,” Reay said in the report. “Atlas doesn’t believe so, mainly due to the fact that a lot of the new supply is simply making up for the total lack of new hotel rooms from 2009-2013.”…
San Diego in Midst of Hotel Building Boom
The San Diego Union-Tribune 02/20/16 San Diego in Midst of Hotel Building Boom By Lori Weisberg http://www.sandiegouniontribune.com/news/2016/feb/20/san-diego-in-midst-of-hotel-building-boom/ It was only six years ago that financial turmoil was roiling the county’s now thriving hotel industry. The iconic Hotel del Coronado was on the verge of defaulting on more than a half billion dollars in debt. San Diego’s then hippest hotel, the W, was in foreclosure. And a luxury downtown property that two years earlier boasted $600-a-night rooms was in bankruptcy. What followed was a years-long drought of new hotel rooms that is a drought no longer. Less than two months into the new year, a powerful resurgence in hotel values and revenues is fueling an El Niño-like deluge of development at a level not seen in at least eight years. From Oceanside to Chula Vista, more than 2,000 hotel rooms are under construction, and at least 7,400 more are in the pipeline, awaiting development approvals and construction permits. Two midrise properties within Liberty Station are under construction, as is a 300-room luxury hotel downtown, and a highrise on Lane Field is nearing completion. Further north, Oceanside has multiple mid-sized projects in various planning stages, while Legoland recently submitted a proposal…
Developers Rush to Build Orange County Hotels
Orange County Register 02/19/16 Developers Rush to Build Orange County Hotels By Jonathan Lanser http://www.ocregister.com/articles/hotels-704966-county-rooms.html Orange County is in the middle of a hotel construction boom. Three hotels opened in Orange County last year, adding 606 rooms for visitors to choose from, after four hotels with 699 rooms opened in 2014, Atlas Hospitality reports. The largest hotel to open in 2015 was the 221-room Courtyard Anaheim Theme Park Entrance. This year will be even busier. Orange County has 12 hotels with 2,461 rooms scheduled to open as soon as this year, Atlas reported. The highlight of this building boom is the 603-room Great Wolf Lodge in Garden Grove, which opened Friday. In addition, Orange County has another 25 hotels with 4,234 rooms in various stages of planning. The building boom follows a sharp recovery for tourism. Room rates soared 31 percent in the last year years, according to CBRE Hotels. “We’re OK for the next couple of years,” says Alan Reay, Atlas president. “But lenders and buyers are now showing a little but of caution.” Hotel business fundamentals are strong, and it should stay that way throughout 2016, Reay says. Record profits lured developers back into building hotels, as…
OC Hotel Development Rising
Orange County Business Journal 02/19/16 OC Hotel Development Rising By Paul Hughes http://www.ocbj.com/news/2016/feb/19/oc-hotel-development-rising/ Orange County had 37 hotels with 6,705 rooms under construction or in planning at the end of 2015, a report by Irvine-based Atlas Hospitality Group Inc. said. The hotel consultancy and brokerage said 12 hotels with 2,461 rooms were under construction locally and another 4,234 rooms at 25 properties were in planning. Last year three hotels with 606 rooms opened—slightly below 2014’s four hotels with 699 rooms—Atlas said. The largest hotel under construction at year-end—the Great Wolf Lodge in Garden Grove with 603 rooms—opened today. The building and planning mirror-statewide numbers that show nearly 600 hotels with 90,000 rooms under construction or in planning. “California is experiencing a hotel development boom, which will continue for at least the next 2-3 years,” said Atlas President Alan Reay. Orange County projects under construction or in planning are 6% and 7% of the state’s totals, respectively.
SPECIAL REPORT: New Scene Checks In
Los Angeles Business Journal 01/25/16 SPECIAL REPORT: New Scene Checks In Once known for rock ‘n’ roll excess, Sunset Strip now making room for hotel developments aimed at reviving area as must-visit destination. By Daina Beth Solomon http://labusinessjournal.com/news/2016/jan/25/special-report-new-scene-checks/ Over the decades, the Sunset Strip has witnessed Jim Morrison dangle out of a hotel window, Tower Records become a global landmark and River Phoenix die of a drug overdose. Now a new era is beginning for the legendary area as real estate developers look to bank on the boulevard’s storied past of celebrity and counterculture. After three decades without major construction, several multistory projects have broken ground and are pushing up the Strip’s skyline. Sleek new buildings with rooftop pools and public plazas will add more than 758 hotel rooms and 254 residences on Sunset Boulevard. Altogether, they represent an estimated value of $1 billion. At least two other complexes are in development as well, including a Frank Gehry design. Backed by major companies, these projects will inevitably transform both the economy and culture of the iconic mile-and-a half section of Sunset. “Sunset has gone through so many changes over the years, from the hippies and punk rockers to the…
Small Hotels Adopt Big Ideas
Laguna Beach Independent 01/22/16 Small Hotels Adopt Big Ideas By Randy Kraft http://trendmag2.trendoffset.com/display_article.php?id=2377210&id_issue=288387 Ever since developer Ian Schrager opened Morgans hotel in Manhattan in 1984, boutique lodging has been a hip alternative to large resorts and hotel chains. The globetrotting millennial population will further spur the trend, suggests Skift, a website tracking travel industry trends, as they prefer chic environs with personal amenities like wine tastings, on-site spas, hi-tech work spaces and high thread-count bedding. In Laguna Beach, small hotels are being revitalized to not only appeal to guests with an aversion for chains, but to capitalize on their historic value. The Coast Inn and Casa Laguna Inn & Spa, both close to the century mark, are modernizing, and a different kind of change is afoot at a former midscale chain hotel with an enviable location. All three properties were purchased in recent years at prices reflecting the demand for coastal resorts, but still far lower than larger upscale properties like the Montage, which sold last year at a record $1.4 million per room, comparable to the Waldorf Astoria in New York City. “Laguna hotels trade for a higher price per room than other Orange County hotels due to…
