Atlas in the news
Hotel Sales Surged To Pre-Pandemic Levels Last Year, Reflecting Investor Confidence
As leisure travel made a comeback last year, deals for hotels worth $25M or more reached levels not seen since 2018. Total sales nearly quadrupled in 2021 compared to 2020, reaching $21.5B, Real Estate Alert reported. That number represents a 265% year-over-year increase, demonstrating investors’ confidence in the travel sector’s recovery and rising interest in deploying capital into the resurgent property type. Many of the top brokers increased sales by four or five times what they were closing in 2020. Hodges Ward Elliott earned the title of most active broker last year with sales totaling $5.19B, capturing a 27.8% market share, according to data from Real Estate Alert’s Deal Database. CBRE did $3.97B in sales, earning the second-highest total sales last year. Eastdil Secured brokered $3.49B, placing it in third despite increasing sales fivefold. JLL doubled its sales volume to just over $3B, but its overall market share dropped from 29.4% to 16.2%. The hotel industry finished 2021 with something of a bumpy landing. Though the industry reportedly set records during Thanksgiving week, the rise of the omicron variant increased uncertainty about cancellations. But that hasn’t affected investors’ confidence in the sector’s recovery, which Atlas Hospitality President Alan Reay in January predicted would rise on the back of leisure travel in “A” locations like…
Hyatt Place S.F. sells as hotel sales stay hot
More than half a billion dollars worth of S.F. hotels changed hands in 2021. We knew it was a hot year for California hotel flipping in2021, but the numbers out this week from Atlas Hospitality’s year-end hotel sales survey show just how unprecedented it really has been.Case in point: On Monday morning it was announced the230-room Hyatt Place San Francisco Downtown, located on Third Street steps away from Oracle Park, was sold last week to Utah-based real estate investment firm Dynamic City Capital for an undisclosed price, per the buyer’s bulletin. The seller was Stonebridge Cos. The hotel property sold for$105,856,000, according to a calculation from the property transfer tax found in city records, but the buyer might have paid more when furniture and fixtures are included. That puts the key price at $460,243, about $2,000 shy of the price AWH Partners paid last year in its $87.5 million deal for the Villa Florence San Francisco on Union Square from Pebblebrook Hotel Trust. And it’s about $40,000 more than the median key price among San Francisco’s six hotel deals last year. Fueled by low interest rates, a glut of investment capital and an “only up from here” attitude, real estate…
California Hotels Saw ‘Unprecedented Sales Volume’ In 2021
As the hospitality industry continues to recover from the coronavirus pandemic, California hotels set new investment records in 2021. A 2021 year-end report from hotel brokerage Atlas Hospitality Group found individual hotel sales in the state surged 71% over the previous year to a record 510 transactions. Dollar volume for hotels also hit a record $9.9B, and a record number of hotels sold for more than $1M per room. “The combination of low interest rates and the tremendous amount of investment capital resulted in unprecedented sales volume,” Atlas Hospitality Group President Alan Reay wrote in the report. “Based on the interest we are seeing very early in 2022 from buyers, it appears that there is no letup in the demand or appetite for California hotels.” LA County was the leader in the state for both number of hotels sold and total dollar volume, with 77 hotels selling for a total volume of approximately $1.9B. Of the major counties tracked by Atlas, only San Francisco saw a decrease in individual sales, with six hotels trading last year, down 33% from 2020. Dollar volume, however, nearly doubled, with the average price per room increasing nearly 70%. The state’s most expensive sale on a per-room basis was the 59-room Allia Ventana Inn & Spa in Big…
5 Things To Know for Feb. 7
Today’s Headlines: Frontier Airlines To Buy Spirit in $6.6 Billion Deal; Travel Industry Prepares for Endemic COVID-19; California Hotel Sales Break Multiple Records; Airfares Surge for Spring and Summer Travel; Future of Hotel Minibars Questioned in Age of Mobile Delivery https://www.costar.com/article/1421962403/5-things-to-know-for-feb-7 By Bryan Wroten | Hotel News Now February 7, 2022 | 7:23 AM Editor’s Note: Some linked articles may be behind subscription paywalls. 1. Frontier Airlines To Buy Spirit in $6.6 Billion Deal Frontier Airlines will buy Spirit Airlines for $2.9 billion in a cash-and-stock deal, but the total price is $6.6 billion when accounting for the assumption of debt and other liabilities, the Associated Press reports. The deal would create the fifth-largest airline in the U.S. “This transaction is centered around creating an aggressive ultra-low fare competitor to serve our guests even better, expand career opportunities for our team members and increase competitive pressure, resulting in more consumer-friendly fares for the flying public,” Spirit CEO Ted Christie III said in a prepared statement. 2. Travel Industry Prepares for Endemic COVID-19 As countries loosen coronavirus restrictions, and ease lockdown measures and testing requirements for vaccinated individuals, the travel industry is preparing for COVID-19 to transition from pandemic status to endemic. Travel industry…
Large-Scale Sales Shatter California Hotel Transactions Records
Survey Reports 510 Deals That Total Nearly $10 Billion https://www.costar.com/article/1977010959/large-scale-sales-shatter-california-hotel-transactions-records By Bryan Wroten | Hotel News Now February 7, 2022 | 6:29 AM By every measure, 2021 was a record year for California hotel deals. The California Hotel Sales Survey 2021 Year-End reports there were 510 hotel deals for the year, up 71% compared to 2020 and above the 2014 record of 399 deals. The total dollar volume amounted to $9.93 billion, a 204% increase over last year and more than the 2015 record of $9.5 billion. At $265 million, the Montage Healdsburg was the state’s most expensive deal. The state also set new several records prices per key. The median price per key reached $137,877, a 23% increase over 2020 and higher than the previous record of $121,907 in 2019. Thirteen deals included a price of $1 million a key, another record, and that includes the Alila Ventana Big Sur twice because it was sold two times in the year for more than $2.5 million each time. Another three hotels sold for more than $2 million per key as well, another record. Looking back through company records, Atlas President Alan Reay said California has never sold more than 400 hotels…
Hotel Sales, Post-Pandemic, Offer Economic Hope
https://www.connectcre.com/stories/hotel-sales-post-pandemic-offer-economic-hope/ California + San Diego + Hospitality | February 9, 2022 By: Jason Middleton The economic impact of the pandemic rippled through just about every economic sector, category and even household. Travel and hospitality, though, got walloped in 2020, and lingering bruising in 2021. The World Tourism and Travel Council expects a 6.2 percent jump from 2021’s overall tourism impact, globally. In the U.S., tourism/travel is expected to add $2 trillion to annual GDP. In San Diego and other California cities, the sale of hotels is also seeing a resurgence – a possible bellwether of a solid recovery in the hospitality space. Atlas Hospitality’s end-of-2021 survey/research report shows San Diego sales of properties here were up 122 percent – from 22 in 2020 to 49 in 2021. The Hilton Mission Valley led sales in 2021 in terms of the total number of rooms on the block. The 350-room hotel sold for $66 million.
Hotel Industry Sees Record High Openings
BYHANNAH MADANS WELK FEBRUARY 14, 2022 https://labusinessjournal.com/special-reports/hotel-industry-sees-record-high-openings/ Pandemic-related travel restrictions are still being observed in many places, but you wouldn’t know it based on the number of hotel rooms that opened in the Golden State last year. In 2021, California set a record for the number of hotel rooms to open in a year, with 12,027 rooms. L.A. County had the highest number of hotels and hotel rooms to open out of any county, with 21 hotels and 3,249 rooms opening last year. It was a 195% room increase from 2020, according to data from Irvine-based Atlas Hospitality Group. But the numbers may not tell the full story. “The survey might be a little skewed,” said Alan Reay, president of Atlas Hospitality. “A lot of developers postponed opening their hotels in the last part of 2020, so that might have bumped up the number of properties that opened in 2021. Having said that … there’s a lot of optimism in the hotel business.” Brandon Feighner, an executive vice president at CBRE Group Inc.’s CBRE Hotels Advisory practice, agreed. “Hotel development in L.A. is a long and arduous process,” Feighner said. “A number of hotels that opened started pre-pandemic but took…
San Diego Hotels Sold as California Investment Climate Gets More Hospitable
Orange County Investor Buys Two Properties in $72 Million Deal By Lou Hirsh | CoStar News February 11, 2022 | 2:44 P.M. https://product.costar.com/home/news/shared/24528047?utm_source=newsletter&utm_medium=email&utm_campaign=personalized&utm_content=p9&t=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJjb250YWN0SWQiOiIxOTgzMzU2IiwiY3VsdHVyZUNvZGUiOiJlbi1VUyIsImlhdCI6MTY0NDg1MDEwNX0.ereO77EpmDRczmbj-TLkn_KnVw-BNlS13Wt-IaqouW0 Two hotels with nearly 300 combined rooms in San Diego’s Old Town neighborhood were sold for $72 million as hospitality property values have been rising across the state amid an improving tourism economy. Investor MIG Real Estate of Newport Beach, California, acquired the 176-room Courtyard San Diego Old Town, built in 1987 and renovated in 2016, at 2435 Jefferson St., and the 123-room Fairfield Inn & Suites San Diego Old Town, built in 1988 and renovated in 2012, at 3900-3902 Old Town Ave., according to CoStar and public data. The seller was investor Clearview Hotel Capital of Newport Beach, and the per-room price was on par with the regional average of approximately $240,000 over the past 12 months, according to CoStar hospitality data. San Diego hotel investment topped $1.1 billion during 2021, an increase of 290% from the prior year, according to a new report from hotel brokerage and research firm Atlas Hospitality Group, which reported per-room deal pricing rising more than 20%. This came as California saw hotel sales reach a record $9.9 billion, up 204% from the prior year, aided by a…
Bay Area hotel buying binge sprouts, puts COVID in “rear-view mirror”
Investors launch shopping spree for Bay Area, California hotels By: GEORGE AVALOSGEORGE AVALOS | gavalos@comgavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: February 11, 2022 at 10:30 a.m. | UPDATED: February 14, 2022 at 2:39 p.m. https://www.mercurynews.com/2022/02/11/bay-area-hotel-buy-binge-covid-rear-view-mirror-economy-real-estate/ California’s the California’s hotel market experienced a boom year for sales activity, a surge that included the Bay and Bay Area, even though coronavirus-linked economic ailments continue to afflict the state and this this region, a new report shows. “Buyers and lenders have put COVID-19 in their rear-view mirrors,” Atlas Hospitality Group stated their stated as part of its new report on buying activity for hotels in California. “They have their sights sights firmly on the future.” In Northern California, investors paid an aggregate $4.92 billion for hotels during 2021, which was the was more than triple, or a 254% increase from the $1.39 billion buyers paid for hotels in the region lodging region in 2020, reported Irvine-based Atlas Hospitality, which tracks the California lodging market. In Southern California, investors paid $5.01 billion to buy hotels in 2021, more than twice as much much as the $1.87 billion that buyers paid for hotels in that region in 2020, or a 167% increase. Statewide, combining…
L.A. Rising: Burbank
BY: HANNAH MADANS WELK | FEBRUARY 28, 2022 https://labusinessjournal.com/special-reports/l-a-rising-burbank/ Numerous projects are either under construction or in development in Burbank. Part of the Tri-Cities market, Burbank is a media and entertainment capital, counting Walt Disney Co., ViacomCBS and Warner Bros. among its employers, that has drawn more companies and prospective tenants to the area in recent years. The high-paying jobs and quantity of employees those companies represent — and the lack of new apartment inventory on the market — make Burbank a highly attractive area to developers of all types of real estate, not just soundstages. KEY PROJECTS Second Century Location: 100 California St. Description: Second Century is a Warner Bros. expansion meant to celebrate its second century in business (the company turns 100 in 2023). The project will have two buildings with 800,000 square feet of office space. The expansion also includes the acquisition of Burbank Studios. Developers: Worthe Real Estate Group, Stockbridge Real Estate Fund Architect: Frank Gehry Estimated Completion Date: 2023 First Street Village Location: First Street and Magnolia Boulevard Description: The project will occupy three blocks in Burbank. Once completed, it will have 275 dwelling units and 18,000 square feet of restaurant and retail space. Developer: Del Rey Properties Architects: The CBA Partnership, Architects Estimated…
Hyatt-branded Kissel Uptown Oakland hotel opens downtown
Building includes recreation of 1910s architecture formerly on the site San Francisco / March 07, 2022 01:30 PM TRD Staff https://therealdeal.com/sanfrancisco/2022/03/07/hyatt-branded-kissel-uptown-oakland-hotel-opens-downtown/ A Hyatt-branded hotel opened in downtown Oakland, hoping to take advantage of more travelers as the pandemic eases and more people return to the office. The 168-room Kissel Uptown Oakland at 2455 Broadway includes a recreation of the historic 1910s Beaux-Arts structure formerly on the site, the Mercury News reported. The hotel, part of Hyatt’s Unbound Collection, also brings 74 apartment residences to the Northgate-Waverly neighborhood. An alliance of Signature Development Group and Jordan Real Estate Investment owns and developed the project. Michael Ghielmetti, Signature Development’s founder and president, said people are returning to offices in greater numbers. “We are seeing an uptick,” Ghielmetti said. “People are more comfortable with traveling, getting around, going to bars and restaurants.” The six-story hotel has a rooftop bar and lounge, meeting and conference spaces and indoor and outdoor bars. A deal to bring locally owned French restaurant Occitania is also in the works. The restaurant will be operated by chef Paul Canales, known for his other restaurant, the Spanish-themed Duende. Alan Reay, president of Atlas Hospitality Group, which tracks the California lodging market, said he expects…
Downtown Oakland Adding Two Marriott Brands
By: Jason Middleton California + Bay Area + Hospitality | March 11, 2022 https://www.connectcre.com/stories/downtown-oakland-adding-two-marriott-brands/ One hotel enters; two brands emerge. Two new Marriott-branded hotels are slated to open in downtown Oakland later this year. Expected to add 276 new rooms, the 18-story hotel at the corner of Jefferson and 15th streets, first reported by the Mercury News. Hawkins Way Capital bought the site, at 1431 Jefferson St., in 2019 through an affiliate for $30 million. Marriott will split the space, branded as AC Hotel (133 rooms) and Residence Inn (143 rooms), according to a news release. Externally, construction is nearly complete, with interiors well under way, including the move-in for furniture, fixture and finishes (known as the 3Fs to just about nobody). The hotel is set to open by the end of 2022. A post-pandemic boom in hotel spending shows up in research from Atlas Hospitality Group, excerpted here: In the first six months of the year, the number of hotel sales in Los Angeles County increased 188% compared to the same period in 2020. The value of these deals jumped too, skyrocketing 556% by dollar volume while the median sale price per room increased by 5%. The artists rendering is from Stanton Architecture.
