Atlas in the news

Orange County Business Journal 07/27/16 OC Adds Most New Hotel Rooms By Paul Hughes http://www.ocbj.com/news/2016/jul/27/oc-adds-most-new-hotel-rooms/   Orange County opened more new hotel rooms in the first six months of 2016 than any county in California but its future pace will give way to other areas, according to a recent report. Some 1,100 hotel rooms were added to local inventory through June; some 8,500 more rooms are under construction or in planning, Atlas Hospitality Group in Irvine said. The hotel consultant and broker’s mid-year survey of hotel development showed other areas will overtake OC in delivery of new rooms. • Los Angeles County opened only 326 hotel rooms in the first six months of the year but it has nearly 26,600 under construction or in planning. • San Diego County opened 1,017 rooms year-to-date through June and has 11,400 rooms under construction or in planning. • Riverside and San Bernardino Counties opened no new rooms in the first half of the year and together have 11,655 rooms under construction or in planning. The Southern California market overall added 2,421 hotel rooms in the first six months of the year and has 58,100 rooms under construction or in planning. The statewide report…

The San Diego Union-Tribune 07/26/16 Marriott La Jolla Sale Tops in County By Lori Weisberg http://www.sandiegouniontribune.com/news/2016/jul/26/marriott-lajolla-sold-priciest-san-diego-county/   The 372-room San Diego Marriott La Jolla has been sold for nearly $131 million, making it the single largest hotel sale in the county so far this year. Purchasing the property, in the University Town Center area, was New York-based Carey Watermark Investors 2 Inc., a real estate investment trust that has recently been on a hotel buying spree. In addition to the Marriott La Jolla, it purchased two other Marriotts this year — in San Jose and the Seattle area — plus an Embassy Suites late last year in downtown Denver. That same year, it also acquired a majority interest in a Ritz Carlton in Miami. Not only was the sale the highest in San Diego, but it was the third priciest in California, right behind the San Jose Marriott, according to Orange County-based Atlas Hospitality. The $130.9 million sales price was not disclosed by the buyer but is based on the deed recorded by the San Diego County Recorder’s office. The La Jolla hotel last changed hands in 2011 when the most recent owner, HEI Hotels and Resorts, purchased it for…

Orange County Register 07/17/16 5 Worrisome Things in Anaheim’s Hotel Deal By Jonathan Lansner http://www.ocregister.com/articles/hotel-722597-luxury-tax.html The city of Anaheim is betting on luxury hotels. Last week, city leaders approved a deal that will see Walt Disney Co. and developer Wincome Group get roughly a half-billion dollars in tax breaks over two decades to construct three, four-star-rated luxury hotels near Disneyland and the convention center. That comes on top of a previous deal to help build another luxury hotel in the resort area. The timing night seem ideal. Empty hotel rooms are scarce, rates are rising. Disney’s spending big bucks on another Disneyland upgrade, Star Wars Land. But mistakes are often made when bets are placed amid a white-hot market. Depending on your view, the planned rebates of hotel bed taxes on these luxury projects is seen as a corporate giveaway or a public-private partnership to boost the city’s outsized tourism industry. Deal supporters claim a shortage of top-flight lodging options in the city hurts its tourism and convention business. Gee, I didn’t know the coastal resorts were so far away! “A huge win for the city’s hotel and visitor industry,” says Jay Burress, chief executive of the Visit Anaheim visitors…

Orange County Register 07/10/16 Historic Hotels in O.C. Coast Cities Are Thriving by Offering Cozy, Personalized Experiences By Hannah Madans http://www.ocregister.com/articles/beach-722021-hotel-hotels.html   Perched above the sand in Laguna Beach is the Laguna Riviera Beach Resort, a blink-and-you-miss-it hotel known for its whimsical murals and history of celebrity clients. The family-owned hotel opened in 1948. Guests in its heyday included Richard Nixon, author Pearl S. Buck, and Bill Hanna and Joe Barbera, creators of “The Flintstones.” The Riviera is the last of its kind in the area, still owned by its builder’s family, says owner Kort Pearson. The 41-room hotel, which was built by Pearson’s grandfather Harry Willats, has seen additions and improvements over the years, but Pearson says the property has “stayed true to its roots.” Kitchens, installed in 1948 just in case the hotel converted to apartments, remain in many of the rooms. Longtime customers include Phoenix resident Bruce Levitta and his family. They’ve been regulars for more than 50 years. “We go for the tradition,” Levitta says. “I would almost feel guilty staying somewhere else.” Nearly 70 years ago, the Riviera’s room rate was around $10. That’s $99 today when adjusted for inflation. Guests now pay between $149…

The Orange County Register 07/07/16 Anaheim Considers Tax Incentives for Three Luxury Hotels Near Disneyland By Joseph Pimental http://www.ocregister.com/articles/anaheim-721842-city-hotel.html   ANAHEIM – The City Council on Tuesday will consider tax incentives reimbursing developers some $560 million over 20 years for building three luxury hotels in Anaheim’s resort district, including one at Disneyland. City leaders said the hotels would help Anaheim attract higher-end visitors and conventions to stay and play in a city that offers Disneyland, Angel Stadium, Honda Center and the Packing House. Average nightly rates of $300 would mean double the tax revenue collected from lower-end properties, they said, and the new luxury hotels would add 2,000 jobs. But an industry expert echoes the city’s mayor in questioning whether the market is there for luxury accommodations and whether developers need incentives to realize the business opportunity. The three hotel projects would be the first ones to take advantage of a policy the council approved in a 3-2 vote last year to encourage the construction of hotels that meet AAA’s four-diamond rating by offering to reimburse developers for 20 years 70 percent of the transient occupancy tax collected from guests. Guests pay a 15 percent bed tax. After the 20…

Southern California Public Radio (SCPR) / 89.3 KPCC 06/06/16 In This Sizzling Hot Real Estate Market, Should a Downtown Developer Get Tax Breaks? By Ben Bergman http://www.scpr.org/news/2016/06/06/61382/in-this-sizzling-hot-real-estate-market-should-a-d/   Despite a sizzling hot real estate market in downtown Los Angeles, the L.A. City Council has voted to give almost $200 million worth of loans and tax subsidies to a developer building a four-star hotel complex on the long-stalled Grand Avenue project. The beneficiary of the city’s largess is Related California, which as part of the deal will get to keep half of the sales tax revenue generated by the project over the next 25 years – tens of millions of dollars that would normally flow into the city’s general fund to pay for police, street maintenance and other services. The council unanimously approved the package on Friday. This sort of aid isn’t unusual, but that doesn’t mean it always works out for cities, according to Alan Reay, president of Irvine-based Atlas Hospitality Group. “Typically it’s a great deal for the developer – I’m not sure it’s a great deal for the city,” says Reay. “I’ve seen areas where it’s worked really well and I’ve seen areas where it’s worked terribly.” The…

Orange County Register 06/24/16 As Britain Votes to Leave EU, Will There Be Ripples, or More, from Across the Pond? By Rachel Uranga http://www.ocregister.com/articles/california-720540-see-dollar.html   Britain’s exit from the European Union shocked markets, reshuffled alliances and created a new political reality that experts say will be felt in Southern California…   …Another industry likely to take a hit is tourism. Last year, an estimated 700,000 tourists came to California from the U.K., according to Alan X. Reay, president of Atlas Hospitality group in Irvine. “I think we’ll see a dramatic decrease in visitors if the pound doesn’t recover,” Reay said. “From a business traveler standpoint, we’ll see changes in travel fairly immediately. On the vacation side, people book three to four months out. So we’ll start to see it showing up in tourism numbers next year.” Cheung at World Trade Center LA concurred. “If the dollar is too strong, think about the negative impact this will have on the Harry Potter ride at Universal Studios or the ‘Star Wars’ park at Disneyland,” he said.

Los Angeles Business Journal 06/24/16 AEG Drops Planned LA Live Hotel Expansion By Daina Beth Solomon http://labusinessjournal.com/news/2016/jun/24/aeg-drops-planned-la-live-hotel-expansion/   Anschutz Entertainment Group is abandoning plans to build a 755-room hotel next to its Ritz-Carlton and J.W. Marriott tower at downtown’s L.A. Live. The move comes as AEG claims that a planned 1,000-room hotel to be developed by the city across the street infringes on its property rights. In a June 14 letter to City Attorney Mike Feuer, AEG Vice Chairman Ted Fikre said that by moving forward with its own hotel project, the city is disregarding a 1997 agreement that called for AEG to build the Staples Center, LA Live, and a flagship Convention Center hotel. “The development of a second headquarters hotel was not a part of the deal when the city insisted that AEG build a convention headquarters hotel,” Fikre wrote. AEG spokesman Yusef Robb, a former press officer for Mayor Eric Garcetti, said the company is concerned that a city-built hotel, under consideration for a site next to the Convention Center, could block AEG’s access to walkways, driveways, parking, and other facilities. “Certain proposals under consideration would violate AEG’s agreements with the City,” Robb said in a statement….

Voice of OC 06/09/16 Disneyland Asking for Largest Hotel Tax Subsidy in Anaheim History By Adam Elmahrek http://voiceofoc.org/2016/06/disneylands-recent-hotel-tax-subsidy-request-is-largest-in-anaheim-history/#   When Disneyland officials unveiled plans this week for a massive new luxury hotel in Anaheim, they also applied for a room-tax subsidy worth well over $200 million, which would be the largest hotel tax subsidy in the city’s history. The proposal calls for a 700-room, 900,000 sq. ft. hotel to be built on a parking lot adjacent to the resort. It would include upscale rooftop dining, two swimming pools with food and beverage service, multiple spas, 24-hr. bell and valet services and a fitness center, among other amenities. The mega resort’s subsidy request was made under the city’s hotel development incentive program, which allows developers to collect 70 percent of the room taxes generated over 20 years by luxury hotels. To qualify, the hotel must be built to standards that would earn a four-diamond rating from AAA…   …City leaders contend such deals are needed because Anaheim is lacking in luxury hotel rooms needed to attract upscale clientele for events at the convention center. But Alan Reay, president of Irvine-based Atlas Hospitality Group, says such arguments are dubious. Wealthy convention goers…