Atlas in the news
Napa Marriott to be sold for $100 million
https://napavalleyregister.com/business/napa-marriott-to-be-sold-for-100-million/article_6c585b9a-03f6-56d0-ad3a-0afd034bf8f1.html Jennifer Huffman Aug 28, 2020 The Marriott Napa Valley Hotel & Spa is soon to have a new owner. Xenia Hotels & Resorts, the current owner of the property, announced it has entered into an agreement to sell the 275-room Marriott for $100 million. The deal should close “before the end of the third quarter,” said a Xenia news release. “The transaction is not contingent upon financing and the buyer has a $5 million deposit at-risk.” A buyer was not named. Alan X. Reay, president of Atlas Hospitality Group in Irvine, said he thinks the sale is an example of how publicly-traded companies are now selling such properties to try and reduce their debt levels. Before COVID-19, “this hotel would have sold for around $147 million,” said Reay. The $100 million price — or a 32% discount, “is in line with other transactions we are seeing selling,” during the COVID-19 pandemic, he said. Might other Napa hotels also change hands in the coming months? Probably not, said Reay. “Most owners are not looking to sell in this market as they do not want to take such a big hit to values, so we do not expect to see any…
California’s Hotel Construction Pipeline Slows in 2020
https://ftnnews.com/accommodation/40149-california-s-hotel-construction-pipeline-slows-in-2020 By: Özgür Töre August 26, 2020 California’s new hotel construction has slowed somewhat from the record-breaking pace set in the first half of 2019, according to the 2020 Mid-Year California Hotel Development Survey. Atlas Hospitality, specialized in the sale of California hotels, released the results of the survey that reveals the total number of upcoming hotels in the California state. The number of hotels under construction decreased by 17.1% (from 234 to 194), and the number of new rooms under construction declined by 19.9% (from 32,424 to 26,418). Thirty-five hotels opened in the first half of 2020, down just one from the thirty-six hotels in 2019, but with 22.5% fewer rooms (4,515 vs 3,500), according to the latest hotel development survey by Atlas Hospitality Group. In planning, the number of new hotels and rooms increased by 9.0% and 5.7%, respectively. There were 1,246 California hotels in planning midway through 2020, versus 1,143 last year. Rooms in planning went from 155,782 to 164,676. SOUTHERN CALIFORNIA LOS ANGELES COUNTY Only one hotel opened in Los Angeles County in the first half of 2020, the 24-room Prospect Hotel. Los Angeles County leads California with 49 hotels and 7,650 total rooms under construction….
Study: California hotel construction outlook is bleak
https://therealdeal.com/la/2020/08/20/study-california-hotel-construction-outlook-is-bleak/ Hotels under construction are distressed, while planned projects get nixed TRD LOS ANGELES / By Matthew Blake August 20, 2020 02:04 PM A report on California hotel construction found there soon will be no hotel construction. “We are forecasting that the vast majority of hotel projects in planning will simply not get built,” concludes Atlas Hospitality Group in their survey of California hotel construction through the first six months of 2020. At least developers with projects in planning can still back out, said Justin Myers, vice president of Atlas Hospitality, which is an Irvine-based hospitality brokerage. Other hotels in construction are distressed, while even those completed don’t want to open due to dismal occupancy rates amid the coronavirus pandemic. Myers gave the example of a 600-room J.W. Marriott in Anaheim by Disneyland. Construction was completed in March, but the hotel did not open until this week. Overall, 194 hotels were under construction in California through June 30, a 17 percent decline from the 231 hotels built at the same time in 2019. L.A. County has 49 hotels under construction, according to the report. The number of hotels built could decline further by this time next year. Atlas Hospitality estimates there are 1,246…
Pandemic Slows Pace of California Hotel Construction in 2020
https://product.costar.com/home/news/1029860132 Some Developers Could Pivot Project to Residential Uses By Lou Hirsh CoStar News August 20, 2020 | 4:14 P.M. Tough times for the travel industry during the coronavirus pandemic spurred a 17% decline in hotel construction in California, coming off a record-setting year for the state that traditionally leads the nation for hotel room demand and development. The number of California hotels under construction dropped to 194 in the first six months of 2020 from 234 in the same period last year, as total rooms under construction declined nearly 20% to 26,418, according to hotel brokerage and research firm Atlas Hospitality Group. “We are forecasting that the vast majority of hotel projects in planning will simply not get built,” said Alan Reay, president of brokerage and research firm Atlas Hospitality Group in a new midyear development report. “Developers are already looking at other uses, namely residential.” The pandemic has created significant financial uncertainty that could affect developer appetites to build the new hotels that are in the state’s long-term pipeline, at a time when many current hotels are struggling to reopen and get customers to return, especially in coastal regions including Los Angeles, San Diego and Orange County. California has historically been the state…
Hotel construction down 17.1% statewide from year ago
Image courtesy of Delawie A rendering of SD Malkin’s Destination Hotel Resort (also known as the Oceanside Beach Resort) in Oceanside. Thursday, August 20, 2020 By Thor Kamban Biberman Newly completed hotels are opening into a pandemic-fueled recession, while those that were planning to begin construction may be thinking about building in another asset class entirely. Atlas Hospitality Group president Alan Reay, whose firm just completed a mid-year hotel construction survey, said numerous new hotels have postponed their openings, while many hotels remain closed. “Over 40 percent of hotels in San Francisco are closed,” Reay said, adding that Anaheim is another city that has been particularly hit hard by the pandemic and hotel closures. “Some projects are being abandoned if they weren’t already under construction.” New hotel construction in California has tempered quickly from the record-setting pace set in the first half of 2019. The number of hotels under construction decreased 17.1 percent (from 234 to 194), and the number of new rooms under construction declined by 19.9 percent, according to Atlas Hospitality. Thirty-five hotels opened in the first half of 2020, just one less than 2019, but with 22.5 percent fewer rooms. The number of new hotels and rooms…
Airbnb Files for IPO as Reeling Hotel Industry Struggles to Recover
Home-Sharing Provider’s Funding Could Help It in Pandemic, Challenge Hospitality Sector By Katie Burke CoStar News August 19, 2020 | 4:32 P.M. Home-sharing company Airbnb officially filed its intention to embark on an initial public offering, catching the hotel industry off guard at a point when it is struggling to recover from the pandemic. The San Francisco-based firm, credited for popularizing the modern short-term home rental industry, told CoStar News it filed the initial paperwork to go public with the Securities and Exchange Commission Wednesday. Airbnb did not disclose the number of available shares or the price range at which they would be offered. The announcement of the filing did not disclose any financial results to give potential investors any indication of how the company is performing in the pandemic. The move could position Airbnb to emerge from the pandemic with financial momentum, potentially setting the stage for it to snap up more market share in the hospitality industry just when hotel properties have reported their biggest, most dramatic drop in modern history. It comes in the same week as the S&P 500 has reached a record high. As more travelers begin to consider venturing away again, Airbnb has been recommending…
