Atlas in the news
Oakland Marriott Bought by DiNapoli Group for Estimated $84 Million
OAKLAND — The iconic Marriott Hotel, a high-rise landmark in downtown Oakland, has been bought by a joint venture led by veteran realty firm DiNapoli Capital Partners. The hotel was bought for about $84 million, according to sources familiar with the transaction. “This shows that downtown Oakland is a very strong market,” said Alan Reay, president of Atlas Hospitality Group, which tracks the hotel market in California. “Prices for hotels are being pushed up in San Francisco, and that has pushed up interest in buying hotels in all the other markets, such as the East Bay and the South Bay.” CIM Group, through an affiliate, sold the 21-story hotel, which has 489 rooms, CIM said Monday. The buyer was a joint venture of DiNapoli Capital and Apollo Global Management, a private equity investment firm. In 2007 CIM bought the Oakland City Center Marriott, along with the 162-room Courtyard Oakland Downtown. At that time, CIM paid $66 million for the two hotels together. The realty firm undertook a wide-ranging renovation of the Oakland Marriott that was completed in 2011. CIM later teamed up with the city of Oakland for a renovation of the 89,000 square feet of meeting spaces in the…
Disney Purchases Carousel Inn for $32 Million
ANAHEIM – The Walt Disney Co. has purchased a hotel that sits directly across Harbor Boulevard from its two theme parks for $32 million, according to public records. Disney, through a limited-liability corporation, Carousel Holdings EAT, purchased the 131-room Carousel Inn & Suites on 1530 S. Harbor Blvd. from Good Hope International. Messages to Good Hope representatives for comment were not returned on Wednesday. A Carousel Inn manager said he was unaware of the sale. A Disneyland spokeswoman confirmed the purchase. Sandwiched between the Pizza Press restaurant and the Tropicana Inn & Suites, the five-story hotel features a rooftop pool and guest rooms ranging in size from 300 to 700 square feet. Guests typically pay $109 to $400 per night. Disney finalized the purchase on March 23, according to public records. “The Walt Disney Co. saw this as a strategic investment, as opportunities to purchase properties in close proximity to the resort are extremely rare,” said Suzi Brown, a Disneyland spokeswoman. Brown said the current management will continue to operate the Carousel Inn. She added that Disney has no long-term plans for the property at this time. “I think whatever they have in mind will be good for the resort…
Yay, downtown Sacramento gets a Kimpton Hotel. What’s a Kimpton?
It’s big news in the hotel industry that downtown Sacramento is getting a boutique property with the Kimpton Hotels brand. But outside of the hotel industry, few folks know the name. There are no hotels called Kimpton. The San Francisco-based chain operates its boutique hotels under mostly unique local names. In San Francisco, those include Hotel Palomar, the Argonaut Hotel, Hotel Tomo and The Tuscan. Another high-profile Kimpton property is the Sir Francis Drake on Union Square, which features doormen in traditional British Beefeater garb. The company has not decided what to call the Sacramento hotel, said Aimee Grove, a spokeswoman for Kimpton Hotels. She said it will likely be a “unique brand to the Sacramento area. However in terms of the name specifically, there is nothing confirmed.” The announcement of the brand came Monday. The Sacramento Kings and JMA VenturesLLC are developing a 250-room hotel in part of a 16-story mixed building near the new downtown arena. The project also includes condos and retail space. “Kimpton is a hip, lifestyle hotel. It is attracting the millennials,” said Alan Reay, president ofAtlas Hospitality Group. “It is a good choice for the next 15 to 20 years.” The Kimpton choice signals…
SLS Beverly Hills Hotel Sold for $195 Million to Sunrider International
The luxury SLS Beverly Hills hotel created by hotel and nightclub mogul Sam Nazarian has been sold for $195 million to Torrance multilevel marketing and hotel firm Sunrider International. Nazarian’s company SBE opened the 297-room hotel in 2008, just as the hospitality industry was going into a recession-related skid. The hotel business has since recovered and investors have snatched up high-end Southern California properties at steep prices in recent months. ———— FOR THE RECORD: Hotel sale: In the May 5 Business section, an article about the sale of the SLS Beverly Hills hotel identified the sellers as Sam Nazarian’s company SBE and co-owner CIM Group. CIM was not a co-owner of the property and was not involved in the sale. — ———— In January, the five-star Montage Laguna Beach sold for $360 million — a record $1.4 million per room for a California hotel. The 47-room Malibu Beach Inn traded for $79.9 million in February, and the trendy 182-room Ace Hotel in downtown Los Angeles just sold for $103 million. This year’s sales are building on a 2014 trend that saw real estate investors rush into the hotel business as tourism and business travel surged. Investors bought 399 California…
Ace Hotel in downtown Los Angeles sold for $103 million
The trendy Ace Hotel that opened last year in a refurbished historic building in downtown Los Angeles has been purchased by a Maryland real estate investment trust for $103 million. The 182-room hotel near the intersection of Broadway and Olympic Boulevard will continue to be operated by Ace Hotel Group, buyer Chesapeake Lodging Trust said. The seller was Connecticut real estate investment firm Greenfield Partners. Film luminaries Mary Pickford, Douglas Fairbanks, Charlie Chaplin and D.W. Griffith built the 13-story United Artists building at 927 S. Broadway in 1927. It held offices for rent and a theater where United Artists pictures debuted, starting with Pickford’s film “My Best Girl.” The offices were converted to hotel rooms. The 1,600-seat theater has been restored and is now used as a meeting, function and entertainment venue for rent. “The theater booking pace is up considerably from its first year and will host over 100 events in 2015,” said James L. Francis, Chesapeake’s chief executive. “We estimate that the theater alone will generate revenues in excess of $4.4 million and net operating profit of over $2 million.” The Ace Hotel also has a rooftop bar that stands between a swimming pool and outdoor lounge area….
The Declan To Be Transformed Into Marriott Timeshare
Fresh from a multimillion-dollar renovation, Downtown San Diego’s all-suites luxury hotel has a new owner, and a new format to boot: Vacation ownership under a Marriott Vacations Worldwide flag. Marriott Vacations Worldwide has paid $52.65M, or some $199,400/room, for the hotel from NYC private equity fund Westbrook Partners, according to Irvine-based Atlas Hospitality. Marriott’s Ed Kinney says the company intends to operate The Declan as a hotel for the remainder of the year before converting the property to timeshare ownership. Ed says the fact that The Declan now operates as a suites hotel makes it ideally suited for conversion into ownership. “We’re not making any major changes,” he says. The 264-room hotel at 701 A St completed a huge reno after going independent from Starwood Hotels & Resorts’ Sheraton brand in 2013. Marriott Vacations Worldwide also operates the San Diego Marriott Marquis & Marina and the Coronado Island Marriott Resort & Spa as part of its vacation ownership plan. Source: https://www.bisnow.com/archives/newsletter/local-real-estate/san-diego/4821-breaking-news-the-declan-to-be-transformed-into-marriott-timeshare/
Disney purchases Carousel Inn across the street from Disneyland for $32 million
ANAHEIM – The Walt Disney Co. has purchased a hotel that sits directly across Harbor Boulevard from its two theme parks for $32 million, according to public records. Disney, through a limited-liability corporation, Carousel Holdings EAT, purchased the 131-room Carousel Inn & Suites on 1530 S. Harbor Blvd. from Good Hope International. Messages to Good Hope representatives for comment were not returned on Wednesday. A Carousel Inn manager said he was unaware of the sale. A Disneyland spokeswoman confirmed the purchase. Sandwiched between the Pizza Press restaurant and the Tropicana Inn & Suites, the five-story hotel features a rooftop pool and guest rooms ranging in size from 300 to 700 square feet. Guests typically pay $109 to $400 per night. Disney finalized the purchase on March 23, according to public records. “The Walt Disney Co. saw this as a strategic investment, as opportunities to purchase properties in close proximity to the resort are extremely rare,” said Suzi Brown, a Disneyland spokeswoman. Brown said the current management will continue to operate the Carousel Inn. She added that Disney has no long-term plans for the property at this time. “I think whatever they have in mind will be good for the resort…
Hyatt La Jolla will be sold for $118M
A year after taking over full ownership of the Hotel del Coronado, Strategic Hotels and Resorts has decided to unload its interest in the Hyatt Regency La Jolla in a deal valued at $118 million. The Chicago-based real estate investment firm, along with its joint venture partner, which is affiliated with the government of Singapore Investment Corp., announced on Tuesday its intent to sell the 417-room hotel to affiliates of Walton Street Capital and JMA Ventures. The sale, which will allow the Strategic joint venture to retire more than $89 million in debt, is expected to close some time during the second quarter of this year. In its announcement, Strategic said little about what was driving the planned sale, other than to indicate it is part of its overall strategy to part with its “non-core assets.” The move, though, appears to be guided by its growing interest in high end resort properties, said hotel analyst Alan Reay. In January, Strategic purchased the 250-room Montage Laguna Beach for $360 million and at the time assumed a $150 million mortgage. It also owns a number of other marquee properties like the Ritz Carlton in Laguna Niguel and the Loews Santa Monica Beach….
Hyatt Regency La Jolla Selling for $118 Million
Strategic Hotels & Resorts and its joint partner are selling the 419-room Hyatt Regency La Jolla for a reported $118 million Source: http://www.sddt.com/RealEstate/article.cfm?SourceCode=20150428czh&_t=Hyatt+Regency+La+Jolla+selling+for+118+million#Article
Doubletree hotel in Mission Valley is sold
The 219-room Doubletree hotel in Mission Valley has sold for more than $49 million, marking the second hotel deal in a week. Built in 1970, the Doubletree San Diego-Hotel Circle was sold to Oak Coast Properties, a four-year-old investment firm that invests in retail, residential and hotel properties. Also selling in the last week was The Grand Del Mar, one of San Diego’s top luxury resorts. Purchasing the Carmel Valley property was financier Richard Blum’s private equity firm, Blum Capital, although the seller, “Papa” Doug Manchester – who is also publisher of U-T San Diego – will retain a minority stake. The transaction valued the 400-acre resort at $230 million. The sale of the Doubletree involved two transactions, one a leasehold and the other land, which together totaled $49.25 million, according to CoStar Group, which documents commercial real estate transactions. The eight-story hotel property includes the Panini Restaurant, meeting and event space, an outdoor pool and spa, and a five-story parking garage. “This was an opportunity for us to acquire a well-positioned asset with a world class brand in a very strong sub market of San Diego, Mission Valley,” said Phillip Nahas, a managing partner with Oak Coast. “San Diego’s…
Growth of online rentals a hot topic at Carmel Valley hoteliers’ gathering
The forecast for San Diego’s tourism industry in 2015 is bright with a few clouds. The sunny outlook for the year was presented March 20 at Carmel Valley’s R.A. Rauch and Associates’ annual lodging industry event, “An Extraordinary Year Ahead,” at the Hilton Garden Inn in Torrey Hills. The event featured a discussion moderated by Gary London from The London Group Realty Advisors with two experts in the hotel sector: longtime Carmel Valley resident Robert Rauch of R.A. Rauch, and Alan Reay from Atlas Hospitality Group, a specialist in capital markets and a leading hotel industry adviser. “I think this is going to be the best year we’ve ever had in the U.S.,” Rauch said. San Diego finished 2014 at 74.6 percent occupancy, higher than the national average, and is forecast to surpass 75 percent this year. Rauch said they had a record year at his Hilton Garden Inn and at Homewood Suites next door. Many attendees at the forecast event were interested in learning more about the impact of Airbnb, an online vacation rental platform, in which rooms and in some cases entire houses are rented by the night in residential communities by the homeowner. A quick search for…
Hotel giants target tech-savvy millennial travelers
the latest breed of hotel, rooms are up to one-third smaller than traditional quarters, with furniture that looks fresh from an Ikea showroom. The work desk is downsized and might double as a nightstand. The Internet speed is super fast. The Wi-Fi is free. Power outlets and USB ports dot the walls, especially near the bed to accommodate binge watching. The target is the millennial traveler, ages 18 to 34, who likes to stay connected online, eat on the run and commune with other millennials. Hotel giants, including Marriott International and Hilton Worldwide, are launching brands with names such as Moxy, AC, Edition, CitizenM and Canopy. Even billionaire Sir Richard Branson has a new millennial-oriented chain, dubbed Virgin Hotels. For good reason: Millennials number more than 75 million in the U.S., and this year the Census Bureau projects they will surpass baby boomers as the nation’s largest generation.Plus, they have money to blow. U.S. millennials plan to spend about $226 billion this year on travel, according to a Harris Poll survey. “I think it’s definitely a smart move,” said hotel consultant Alan Reay of Atlas Hospitality Group in Costa Mesa. “It’s a huge market.” Creating a millennial hotel means tossing…
