Atlas in the news

https://news.theregistrysf.com/alila-ventana-big-sur-sells-again-after-3-months-reaching-150mm/ By Vladimir Bosanac After just three months of ownership, Hyatt Hotels Corporation has flipped the 59-room Alila Ventana Big Sur for $150 million, or around $2.608 million per room. This price point is around $2 million more than what the company paid in June when it acquired the hotel from Geolo Capital, the private equity investment arm of the John Pritzker family office, and its joint-venture partner Wanxiang America Real Estate, according to reporting by The Registry. The newest buyer is Bethesda, MD-based Host Hotels & Resorts, which has entered into a long-term management agreement with Hyatt. This latest sale represents the second highest price per room ever paid in the United States for a hotel property. The sale of the Plaza Hotel in New York at $2.608 million per room is still the highest watermark achieved for the industry in this country. Host estimates that the transaction represents 9.3 times 2021 estimated hotel EBITDA, according to sources. When Hyatt purchased the property earlier this summer, John Pritzker, Geolo founding partner and director said, “We saw substantial unrealized value in controlling 59 of Big Sur’s 100 available full-service guest rooms and understood the potential to raise average daily rates following a comprehensive renovation, rebrand and repositioning.” Originally…

https://therealdeal.com/sanfrancisco/2021/09/15/awh-partners-purchases-silicon-valley-hotel-adds-to-bay-area-portfolio/ The Hilton Garden Inn Fremont Milpitas landed a buyer that has been snatching up hotel properties in the Bay Area San Francisco / September 15, 2021 04:25 PM TRD Staff The Hilton Garden Inn Fremont Milpitas landed a buyer that has been snatching up hotel properties in the Bay Area. AWH Partners, which recently purchased the historic Villa Florence Hotel in Union Square for $87.5 million, bought the Hilton property in Fremont for $38.9 million in an all-cash deal, Mercury News reported. The property, which completed construction earlier this year, features 145 rooms, a fitness center, a business center and an indoor swimming pool. There is also a restaurant and 24-hour market included in the hotel. This latest purchase suggests the hotel industry is bouncing back from the effects of the Covid-19 pandemic. Alan Reay, president of Atlas Hospitality Group, which monitors the lodging market in California, said buyers are starting to look at the bigger picture and plan for the long term. “The product type of this hotel is the kind of product that is coming back faster after Covid than the major full-service hotels,” Reay said. “This hotel typically has a much better profit margin than the really big hotels. It’s a very…

https://www.sonomanews.com/article/news/no-room-at-the-inn/ LORNA SHERIDAN INDEX-TRIBUNE MANAGING EDITOR August 19, 2021, 5:30PM Sonoma’s largest hotels Fairmont Sonoma Mission Inn: 226 guest rooms. The Lodge at Sonoma: 182 rooms. Best Western Sonoma Valley Inn: 82 rooms. MacArthur Place: 64 rooms (with a current proposal to add 11 more). El Pubelo Inn: 53 rooms. The rest have fewer than 50. It’s not your imagination. Downtown Sonoma is chock-a-block with tourists. Local hotels are boasting 80-to-100% occupancy rates. “The past few months have been some of the best in the MacArthur Place’s 20-year history with record average daily rates and record-breaking occupancies consistently over 80%,” said Chad Parson, CEO of Lat33 Capital (formerly IMH Financial), which has owned MacArthur Place since 2017. Lodge at Sonoma General Manager Chris Wingerberg described business as “strong and very comparable to 2019.” Across town at El Pueblo Inn, General Manager Aranda Tines told the Index-Tribune the hotel has been booked solid since June, including most weekdays — something the staff there can’t remember ever experiencing before. Up Highway 12, Michele Heston of the Fairmont Sonoma Mission Inn described occupancy levels as “very strong (mirroring 2019 levels) due in part to a recent resurgence in weddings and family reunions.” Local…

Signia Hilton is new brand for iconic downtown San Jose hotel https://www.mercurynews.com/2021/08/19/challenge-opportunity-downtown-san-jose-hotel-manage-hilton-covid/ By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: August 19, 2021 at 11:15 a.m. | UPDATED: August 20, 2021 at 9:08 a.m. SAN JOSE — The new manager of a downtown San Jose hotel that has emerged from bankruptcy faces   challenges and opportunities amid lingering side effects of the coronavirus. With a plan approved and in place to revamp the finances of the Fairmont San Jose, the next major steps for the property will include reopening the lodging and the official rebranding of the hotel as Signia Hilton San Jose. The prominence of the Hilton name could bolster the hotel’s fortunes when it begins operations as a Signia hotel, according to Alan Reay, president of Irvine-based Atlas Hospitality Group, which tracks the California lodging market. “If you are measuring Hilton’s name against Fairmont’s name, Hilton with its worldwide presence and sheet number of properties far outweigh the Fairmont name recognition,” Reay said. “Internationally and domestically, Hilton is a stronger brand and stronger name than Fairmont.” Still, the management of the new Signia Hilton San Jose will face considerable challenges to restore the 805-room hotel to top-notch financial status. That’s because the full-service…

https://labusinessjournal.com/news/2021/aug/16/hotel-sales-surpass-pre-pandemic-levels/ By Hannah Madans – Los Angeles Business Journal Monday, August 16, 2021 Hotel sales are hitting record highs, surpassing not only 2020 but 2019 levels as real estate investors who waited out early waves of the pandemic finally look to spend. 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%. Even more noteworthy is that 2021 hotel sales are outpacing 2019. In the first half of 2019, 22 hotels in L.A. traded hands for $179.8 million, or a median price of $107,863 a room. This year, the county has logged 46 transactions for a total of $846.2 million, or a median price of $153,576 a room, according to data from Atlas Hospitality Group. “It’s pretty amazing. I don’t think anyone could have predicted or forecasted that this was going to happen,” said Alan Reay, president of Atlas Hospitality. “To see this incredible rebound — not only prices but also the number of transactions — is really astounding.” Los Angeles is outpacing the…

https://labusinessjournal.com/news/2021/aug/16/hotel-sales-surpass-pre-pandemic-levels/ By Hannah Madans Monday, August 16, 2021 Hotel sales are hitting record highs, surpassing not only 2020 but 2019 levels as real estate investors who waited out early waves of the pandemic finally look to spend. 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%. Even more noteworthy is that 2021 hotel sales are outpacing 2019. In the first half of 2019, 22 hotels in L.A. traded hands for $179.8 million, or a median price of $107,863 a room. This year, the county has logged 46 transactions for a total of $846.2 million, or a median price of $153,576 a room, according to data from Atlas Hospitality Group. “It’s pretty amazing. I don’t think anyone could have predicted or forecasted that this was going to happen,” said Alan Reay, president of Atlas Hospitality. “To see this incredible rebound — not only prices but also the number of transactions — is really astounding.” Los Angeles is outpacing the rest of the state,…

https://www.northbaybusinessjournal.com/article/industrynews/california-hotel-purchases-spike-as-planned-more-rooms-are-planned-statewid/ NORTH BAY BUSINESS JOURNAL August 9, 2021, 11:45AM Purchases of hotels surged in the first half of the year, especially in Northern California, a half year look by Atlas Hospitality Group shows. The report, released Tuesday, shows 243 transactions in 2021’s first six months compared to 2020, sales were up 157%. Looking only at Northern California, 141 hotels bought, triple the 47 deals in the first half of 2020. Those sales were worth $2.8 billion, up 578%. $5.26 billion spent on those 2021 deals topped the previous record set in 2015 by 23%. Compared to virus-chilled January through June of last year, total sales dollars surged by $4.3 billion or 451%. The boom in purchases has also helped drive demand to build hotels. Last month the Journal reported that in Sonoma, Marin, Napa and Solano counties, 83 hotels are in various planning stages, according to Atlas. That includes five projects with 537 rooms under construction in the North Bay. Some of these projects have been permitted for several years, and experts say some may never be completed. Atlas President Alan X. Reay told the Journal in July then there are several factors behind the spike in future hotel planning activity….

https://therealdeal.com/la/2021/08/04/hotel-sales-in-california-completely-rebound-from-2020-levels/ 200% year-on-year increase in LA, though SF sales stay flat Los Angeles / August 04, 2021 11:30 AM By Isabella Farr In California, buying a hotel might be the new hottest thing. Hotel sales in California have skyrocketed since the start of the pandemic, according to a new report from advisory firm Atlas Hospitality. A total of 293 hotels — totaling almost 28,600 keys — were sold across California in the first six months of 2021, up from 114 during the same period in 2020. Around 70 percent of these hotels sold for over $5 million, compared with 50 percent in 2020. In Los Angeles County, 48 hotels changed hands in the first half of 2021, up from 16 in the first six months of 2020. The 580-key Hyatt Regency at LAX and the 175-key Le Merigot hotel in Santa Monica tied for most expensive sale in Los Angeles — both sold earlier this year for $75 million. Both of those hotels sold for way above the average. Across the county, the average sale clocked in at $18 million — a steep increase from the $8 million average in the first half of 2020. Though buyers weren’t interested in every Californian city. Only three hotels changed hands in…

https://www.youtube.com/watch?v=8oAFn70fc2U New survey by Atlas Hospitality Group finds hotel sales rebounding in the Bay Area, especially in Santa Clara County. Atlas’ President Alan Reay joined Sanaz Tahernia to explain the findings. KRON4 News San Francisco, CA www.kron4.com www.kronon.tv

https://www.costar.com/article/1192957393/california-hotel-valuations-may-spur-more-owners-to-sell First Half of 2021 Saw Record Number of Deals, Dollar Volume By Bryan Wroten Hotel News Now August 5, 2021 | 5:29 AM The California hotels transaction market has rebounded from the coronavirus pandemic faster than expected. “I’ve never seen a stronger seller’s market than what we have right now,” Atlas Hospitality Group President Alan Reay said. With every industry analyst predicting U.S. hotels will see normal operations return in a few years, the activity seen in California during the first six months of the year “is pretty phenomenal,” he said. Atlas Hospitality Group’s California Hotel Sales Survey 2021 Mid-Year reports there were 293 hotel deals during the first half of the year, a 157% year-over-year increase. The number of sales also set a new record, surpassing 2017’s record number by 41.7%. The state also saw a new record dollar volume in sales at $5.2 billion, beating 2015’s previous record amount by 22.5%. The median price per room jumped 13%. The highest-price sale was the 130-room Montage Healdsburg in Sonoma County, which sold for $265 million. The 59-room Alila Ventana Inn & Spa in Big Sur claimed the highest price per room paid in California at more than $2.5 million per room,…