Atlas in the news

Silicon Valley Business Journal 10/18/18 Crane Watch Update: Proposals for More Than 4,000 Hotel Rooms Have Piled Up in San Jose’s Tight Market By Janice Bitters https://www.bizjournals.com/sanjose/news/2018/10/18/crane-watch-update-proposals-for-more-than-4-000.html In Silicon Valley, where business travelers come from all over the globe to work with the biggest tech companies in the world, hotel rooms have become a hot commodity — particularly on weekdays. Developers are responding to the demand, according to recent data compiled by the Silicon Valley Business Journal for our Crane Watch project, which tracks and maps projects spanning 90,000 square feet in size or greater throughout San Jose. That data shows more than 4,030 hotel rooms are in the city’s pipeline, meaning they have been recently proposed, are currently entitled to be built, are under construction or just completed. Of those rooms, however, only a fraction have actually broken ground. The Business Journal has tallied only 1,389 hotel rooms in San Jose that are currently under construction or very recently completed. Take a look through the slideshow above to see some of the hotels that have been proposed or are under construction in the city currently. Though the Business Journal is currently only tracking the city of San Jose via…

CoStar 10/17/18 Disney’s Scrapping of Luxury Hotel Disrupts Development in Anaheim, California Disneyland’s Hometown Seeks New Source of High-End Rooms By Lou Hirsh http://www.costar.com/News/Article/Disneys-Scrapping-of-Luxury-Hotel-Disrupts-Development-in-Anaheim-California/205485 The Walt Disney Co.’s recent decision to call off its plans for a luxury 700-room resort hotel next to Disneyland leaves Anaheim, California, behind other destination cities in high-end luxury hotels as a major retail development has been thrown into flux. The city, which has two high-end hotels and three more approved or under construction, has tried to boost luxury hotel development with tax rebates. But a ballot measure next month that could increase the minimum wage for workers in hotels that take the tax break highlights how contentious the issue has become within this Orange County community in the Los Angeles suburbs. Adding to the pressure is Disneyland’s planned Star Wars Galaxy’s Edge attraction that is expected to result in a surge of visitors when it opens next year. “The city has argued that they are losing out to some of the nearby cities as they have not been able to offer four- or five-star hotels,” Alan Reay, president of Irvine, California-based brokerage and research firm Atlas Hospitality Group, said of Anaheim. The section of…

Orange County Business Journal 10/15/18 HOSPITALITY: $415M VALUE ESTIMATED FOR SHERATON Eagle Four Takes Flight to Denver in Big Hotel Buy By Mark Mueller Monday, October 15, 2018 http://www.ocbj.com/news/2018/oct/15/eagle-four-takes-flight-denver-big-hotel-buy/   Newport Beach-based hospitality investor Eagle Four Partners is the latest local name taking notice of Colorado’s red-hot hotel market. Eagle Four announced the purchase of the 1,231-room Sheraton Denver Downtown Hotel last week, currently the largest hotel in Colorado by room count. The property is in the city’s financial and business district. It has 133,000 square feet of events meeting room space, plus several on-site restaurants, among other amenities. It was built by renowned architect I.M. Pei in 1960 as a Hilton property. It’s seen several rebrandings since then, and was turned into a Sheraton a few years ago. Eagle Four bought the hotel in a venture with Atlanta-based High Street Real Estate Partners; it’s the first deal involving the two privately held investors. The property was purchased from Chartres Lodging Group LLC of San Francisco on undisclosed terms. Officials with Irvine-based hotel brokerage and consultancy Atlas Hospitality Group said the hotel was appraised at $415 million in 2016, or roughly $337,000 per room. Chartres Lodging Group paid a reported…

The Signal Santa Clarita Valley 10/05/18 Stevenson Ranch La Quinta Inn and Suites Sold at $22 Million By Tammy Murga https://signalscv.com/2018/10/stevenson-ranch-la-quinta-inn-and-suites-sold-at-22-million/ La Quinta Inn and Suites in Stevenson Ranch has sold to a local private investor for more than $20 million, the dealer Atlas Hospitality Group said. Atlas Hospitality Executive Vice President Oliver Shah and Vice President Robert Feist represented the seller in the September deal. At $22 million, or just more than $196,000 per key, the deal set a record price per bedroom for La Quinta Inn, according to Feist and Shah in a statement. The property labeled one of the highest demographic markets in Southern California, generated a “significant amount of interest,” they added. The new owners plan to be hands-on, the sellers went on to say, who represented “an institutional investor out of West L.A.” JHK Hospitality LLC, a single-manager limited liability company, registered with the Secretary of State’s Office in July, is reported as the purchaser of the property. La Quinta Inn and Suites Santa Clarita-Valencia, located at 25201 The Old Rd., recently finished a multi-million dollar renovation, according to Atlas Hospitality’s website. The Stevenson Ranch location offers 112 guestrooms and more than 20 suites, offering…

Los Angeles Business Journal 09/26/18 DTLA Hotel Boom Continues http://labusinessjournal.com/news/2018/sep/21/downtown-distinction-millennial-move-ins/ Westside-based commercial real estate lender Dominion Mortgage Corp. has provided an $11.6 million construction loan to develop a 64-room hotel branded by Hyatt Hotels Corp. at 1525 N. Cahuenga Blvd. in Hollywood. The under-construction hotel, which is expected to be completed in November 2019, is slated to be part of the Unbound Collection by Hyatt brand. Hyatt has partnered with Hollywood-based hotel developer PNK Group Investments. The project already had received some financing via a $6 million construction financing bond as well as overseas financing through the EB-5 program, which Congress established in 1990 to encourage foreign investment in the United States. The $11.6 million loan is interest-only, where the borrower only pays interest on the loan for a fixed term. The loan’s initial term is two years but offers extensions. “The loan was structured with a balloon payment, as the developer intends to sell the asset and thus, did not want to be locked into a hefty pre-payment penalty,” Keith Olson, partner at Dominion Mortgage, said in an email. The Hyatt-affiliated hotel is part of a larger hotel construction boom in Los Angeles County. Chicago-based developer Oxford Capital Group…

The Registry 09/21/18 Northern California Hotel Market Continues to Favor Sellers By Meghan Hall https://news.theregistrysf.com/northern-california-hotel-market-continues-to-favor-sellers/   The San Francisco Bay Area remains one of the country’s top tourist destinations in the country, making its hotel market one of the healthiest in the nation. 2017 was one of the strongest years on record for hotel sales and development over the past two decades, and investors remain bullish and eager to enter the Northern California hotel market. Although, hotel sales within the state of California have decreased significantly through the first half of 2018, a new report released by Irvine, Calif.-based Atlas Hospitality Group indicates that the hotel market will hold stable long-term. As a whole, California saw a 35 percent decline in the number of hotel transactions during the first six months of 2018; there were 134 individual sales compared with 206 during the same period in 2017. Atlas Hospitality states that this is the third-lowest total in the past ten years and one of the most drastic declines recorded since the 2007 recession, when transactions dropped by 44 percent between 2007 and 2008 and 51 percent between 2008 and 2009. Only two counties in California posted increases in hotel sales…

San Fernando Valley Business Journal 09/19/18 Stevenson Ranch La Quinta Inn’s $22 Million Sale Breaks Brand Record By Michael Aushenker http://www.sfvbj.com/news/2018/sep/19/stevenson-ranch-la-quinta-inns-22-million-sale-bre/   La Quinta Inn & Suites Santa Clarita – Valencia has sold to a local private investor for $22 million, according to Atlas Hospitality Group, which arranged the deal. Atlas Hospitality Group Executive Vice President Oliver Shah and Vice President Robert Feist represented the seller. Feist, who represented “an institutional investor out of West L.A.,” said the new owner plans to be hands-on. He noted that the sale, at just over $196,900 per key, set “a record price per room for a La Quinta” based on available data. “There was a significant amount of interest (in this property),” Feist told the Business Journal. “The seller ultimately chose a buyer who was looking to replace a property.” La Quinta Inn & Suites Santa Clarita – Valencia, which features 112 trooms, including 28 suites, is located at 25201 The Old Road in Stevenson Ranch. The establishment recently completed a substantial renovation, with more than $2.5 million spent on repairs and upgrades. Driving local demand are such destinations as Six Flags Magic Mountain and Hurricane Harbor, Valencia Town Center and California Institute…

HotelBusiness 09/18/18 McNeill Hotel Investors Secures Capital; More Transactions… Atlas Hospitality Group has arranged the sale of the La Quinta Inn & Suites Santa Clarita – Valencia in Stevenson Ranch, CA. Atlas EVP Oliver L. Shah and VP Robert J. Feist represented the seller. The buyer was a local private investor.

Los Angeles Business Journal 09/14/18 Will Loews Santa Monica Top $500M? Recent deals in luxury segment of region’s hotel industry suggest as much By Ciaran McEvoy http://labusinessjournal.com/news/2018/sep/14/will-loews-santa-monica-top-500m/   Loews Santa Monica Beach Hotel could fetch more than $500 million now that China-based Anbang Insurance Group Co. has put it on the market after counting it as part of its portfolio for just two years. The price estimate comes from Alan Reay, president of Irvine-based Atlas Hospitality Group, who based the figure on recent sales comparisons, including last year’s deal for the 358-room Ritz-Carlton Bacara in Santa Barbara. New York-based Carey Watermark Investors bought the Santa Barbara establishment for $375 million, just a bit more than $1 million a room. Reay said the 347-room Loews Santa Monica’s beachfront location in the L.A. market would likely take the mark up to $1.5 million per room or so. Anbang purchased the Loews hotel for $485.4 million in 2016, but the company has been mired in scandal since then. China’s central government seized control of the company earlier this year after its chairman, Wu Xiaohui, was sentenced to 18 years in prison for fraud and embezzlement. The crackdown came after an international buying spree…

The San Diego Union-Tribune 09/14/18 Historic Glorietta Bay Inn Sold to L.A. Hotel Group for $39M By Brittany Meiling http://www.sandiegouniontribune.com/business/tourism/sd-fi-glorietta-sale-realestate-deal-20180911-story.html   The historic mansion in Coronado that local magnate John D. Spreckels once called home has sold to a Los Angeles hotel company for $39 million. Over 100 years ago, the landmark six-bedroom ocean property was built for a few zeros less: $35,000. The extravagant island property — now called The Glorietta Bay Inn — today includes 89 contemporary rooms and suites. It was sold to Kamla Hotels, a family-owned company that owns a mix of boutique and branded hotels in California. The historic property didn’t come cheap. At $39 million, Kamla paid nearly $400,000 per room…   …In the years since, Spreckels’ personal mansion was converted into a B&B property and later, The Glorietta Bay Inn. For the past 42 years, it was owned by La Jolla venture capitalist Ralph “Buzz” Woolley Jr. Atlas Hospitality Group’s president Alan Reay, who brokered the sale, said Woolley sold the property because he wanted to retire. The inn stands out in Kamla’s current portfolio as the only historic property, with mid-range brands including Best Western and Fairfield Inn & Suites dominating its…

The Mercury News 09/10/18 Downtown San Jose Hotel Plans to Expand at Choice Site By George Avalos https://www.mercurynews.com/2018/09/10/downtown-san-jose-hotel-plans-expand-at-choice-site-google-adobe-amazon/   SAN JOSE — Plans have expanded for a hotel tower that would sprout on a choice site in downtown San Jose, a short distance from a planned Adobe Systems campus expansion and proposed Google transit village. A 19-story hotel being eyed for 8 N. Almaden Blvd. and West Santa Clara Street in San Jose originally was expected to have 220 rooms. But a newly submitted set of proposals by project developer KT Urban calls for a 272-room hotel, complete with a rooftop restaurant. “The Silicon Valley hotel market looks strong enough to support this kind of expansion,” Alan Reay, president of Irvine-based Atlas Hospitality Group, which tracks California’s lodging market, said Monday. One reason the market is robust: Rooms in the region — and San Jose in particular — are tough to come by during the week. “I was just talking to somebody who is developing a hotel in San Jose, and they said it’s very difficult to find rooms during the week,” Reay said. Tech-related business travelers are driving the demand during the week, lodging experts said. “Rooms in San…

San Diego Business Journal 09/10/18 Glorietta Bay Inn Sold for $39M By Ray Huard http://sdbj.com/news/2018/sep/10/glorietta-bay-inn-sold-39m/ Coronado’s historic Glorietta Bay Inn has been sold for $39 million to Kamla Hotels by Glorietta Bay Inn, LLC. The 110-year-old boutique hotel at 1630 Glorietta Blvd. is comprised of an 11-room mansion and 89 contemporary rooms and suites. The building has been designated an historic landmark by the Coronado Historical Association. The sale was brokered by Atlas Hospitality Group. “This is the first time in over 40 years that Glorietta Bay Inn was offered for sale,” said Alan X. Reay, president of Atlas Hospitality Group.