Atlas in the news
Posted on
New Ownership for Waldorf Astoria
BY MARK MUELLERNOVEMBER 10, 2025 The Waldorf Astoria Monarch Beach Resort & Club has seen a change in ownership, following a deal that values the Dana Point luxury resort at around $500 million, according to industry watcher estimates. Last month, Yuhaaviatam of San Manuel Nation, an indigenous tribe located in the San Bernardino region, took over full ownership of the 400-room property—one of the higher-end resorts in Orange County—from Redwood City-based Ohana Real Estate Investors LLC.Terms of the deal were undisclosed. San Manuel, whose portfolio includes Yaamava’ Resort & Casino, initially bought a 40% stake in the property from Ohana in 2023. At the time, it was estimated that the resort was valued around $600 million, or roughly $1.5 million a key. Given slightly lower pricing for high-end, coastal properties of late, the Waldorf Astoria’s valuation is now likely closer to $1.25 million a key, according to Alan Reay, the head of Irvine-based hotel consultancy and brokerage Atlas Hospitality Group. At that per-room price, San Manuel’s just-completed deal for the remaining 60% in the resort is estimated at around $300 million. The purchase is believed to be San Manuel’s largest-ever investment in a non-casino property. It is the tribe’s only…
Posted on
East Bay hotel is foreclosed in sign of region’s ailing lodging market
Lender takes property in fresh hotel loan failure By George Avalos | gavalos@bayareanewsgroup.com | Bay Area News Group UPDATED: October 24, 2025 at 4:49 PM PDT NEWARK — A Newark hotel was seized by its lender due to a delinquent loan, a foreclosure that highlights the wobbly values for the region’s hospitality market. The Hyatt Place Newark/Silicon Valley hotel at 5600 John Muir Dr. is now owned by an affiliate of lender State Bank of Texas following a foreclosure of an $18 million loan, documents filed on Oct. 17 with the Alameda County Recorder’s Office show. The bank paid $25.8 million for the 112-room hotel, equal to the unpaid debt on the loan, which State Bank of Texas provided in 2019 to the hotel’s owner. Shivam Real Estate had defaulted on the loan in June and lost the hotel through the foreclosure. Fremont residents Nimish Patel and Dipika Patel are among the principal executives and members of Shivam Real Estate, state business records show. Atlas Hospitality Group has listed the hotel for sale on behalf of the lender, according to a marketing package. Atlas Hospitality agents Oliver Shah and Justin Myers are handling the efforts. On the market for $21.9 million, the hotel was appraised at $41…
Posted on
UC investment unit buys East Bay hotel for more than $170 million
Price is less than hotel’s appraised value in sign of weakness By George Avalos | gavalos@bayareanewsgroup.com | Bay Area News Group UPDATED: October 14, 2025 at 4:46 PM PDT BERKELEY — The University of California’s investment arm bought an East Bay hotel for well under its appraised value, a deal that hints at lingering ailments in the Bay Area lodging sector. UC Investments, acting through an affiliate, paid $175.8 million in an all-cash deal for the 331-room Residence Inn Berkeley, a Marriott brand hotel, according to documents filed on Oct. 8 with the Alameda County Recorder’s Office. “This hotel has a very good location in Berkeley,” said Alan Reay, president of Atlas Hospitality Group, which tracks the California lodging market. “Residence Inn is the most profitable brand that Marriott has.” Near Shattuck Avenue in downtown Berkeley, the 16-story hotel at 2121 Center St. is also about a block from the UC Berkeley campus. In 2023, the hotel was appraised at $218 million in connection with a $120 million financing package it received at the time, according to a report produced by MSCI Real Capital Analytics. The hotel also had previously received $50 million in C-PACE financing for an energy-efficient structure. “UC Investments got a very…
Posted on
Inland Empire on development fast track
By Dennis Nessler | October 13, 2025 The Southern California region is one of the hottest hotel pipeline markets in the country, thanks to its robust logistics sector and low barriers to entry. NATIONAL REPORT — Driven largely by the growth of distribution centers, prohibitive coastal pricing and low barriers to entry, the Inland Empire has emerged in recent years as a key market for hotel developers seeking new opportunities. The Southern California region — located east of Los Angeles County and home to some 4 million residents — encompasses Riverside and San Bernardino counties, including cities such as Palm Springs, Ontario, Fontana, Temecula, as well as the Coachella and Victor Valleys. Due primarily to its proximity to Los Angeles, the region has evolved into a major logistics hub. According to the Q2 2025 Lodging Econometrics report, the Inland Empire is poised for robust hospitality expansion with 122 hotel projects totaling 12,272 rooms in the U.S. pipeline. This ranks the market sixth nationally among the top 50 U.S. markets for hotel construction volume, based on project count. One global brand company with a strong presence in the region is Sonesta International Hotels Corp., which currently operates 10 hotels, including eight Americas Best…
Posted on
San Jose hotel complex faces foreclosure as lodging market remains frail
Property in East San Jose has hundreds of rooms By George Avalos | gavalos@bayareanewsgroup.com | Bay Area News Group UPDATED: October 7, 2025 at 6:48 AM PDT SAN JOSE — A hotel cluster in San Jose with hundreds of rooms faces a loan foreclosure as early as this month if the property’s owner doesn’t cure the delinquent financing. The 204-room hotel site consists of a Motel 6 and a Super 8 by Wyndham, according to documents on file with the Santa Clara County Recorder’s Office. Choice Hotels International provided the hotel complex with a $21.7 million loan in August 2024 and is now pressing ahead with a foreclosure proceeding before the end of October, county property documents show. An affiliate headed up by Texas-based lodging executive Jagmohan Dhillon obtained the loan from Choice Hotels. The hotel complex is at 2560 Fontaine Rd. near the interchange of U.S. Highway 101 and Tully Road. An affiliate that Dhillon also controls is in default on a 104-unit lodging property at 4673 Lassen Road in Livermore. The affiliate for the Livermore hotel has filed for bankruptcy. The south San Jose hotel complex that faces foreclosure is one of several hotel sites that affiliates controlled by private equity firm Blackstone Group sold in recent years to…
Posted on
Braemar’s sale process highlights the squeeze on lodging REITs
By Nellie Day Sep 3, 2025 8:00am Braemar Hotels & Resorts is officially for sale. The Dallas-based luxury hotel REIT announced in late August that it had formed a special committee of independent directors to evaluate “strategic alternatives,” including a potential sale of the company, after months of shareholder pressure. Richard Stockton, the REIT’s president and CEO, says the sale process is meant to address investor concerns and unlock shareholder value. “Braemar initiated a sale process to end shareholder activism, believing it’s the best way for investors to get a premium for their shares,” he says. “Braemar’s luxury portfolio has achieved the highest revpar among its peers, and its strong performance, along with favorable market conditions, positions the company well to attract a premium valuation.” Braemar’s decision comes at a time when lodging REITs are transacting at some of the steepest discounts in the public markets. S&P Global Market Intelligence notes that as of June 30, U.S. hotel REITs were trading at 35.5 percent below their net asset values – the deepest discount of any REIT sector. Higher interest rates, rising operating costs and looming property improvement plan (PIP) obligations have only deepened the divide between Wall Street’s perception of these companies and the…
Posted on
Silicon Valley hotel sells in year’s largest deal for region’s hard-hit hospitality sector
Sheraton San Jose Hotel trades for $5 million less than 2023 deal The 229-room Sheraton San Jose Hotel is near Levi’s Stadium as well as the headquarters of tech giant Cisco Systems. (CoStar) By Rachel Scheier | CoStar News | August 26, 2025 | 12:45 P.M. A Silicon Valley hotel sold for some $20 million, marking the biggest hotel sale in the area in two years, even as the property went for about 20% less than it changed hands for just two years ago. Texas-based investment firm Shreem Capital purchased the 229-room Sheraton San Jose Hotel at 1801 Barber Lane in Milpitas, a town at the southern tip of San Francisco Bay. The seller was an affiliate of Highgate Hotels, a hospitality investment and management company that paid $25 million for the property in December 2023. The latest purchase price was also well below the property’s assessed value of just over $38 million as of January, according to CoStar. The discounted sale is the latest sign that the region’s hospitality market is still coping with an extended hangover from the COVID-19 pandemic. The financial challenges for hotels in San Francisco and East Bay cities like Oakland have been particularly acute, especially as loans…
Posted on
California hotel sales show year-over-year decline, North Bay included
The most expensive hotel sale in the North Bay through June 30 was the 27-room Redwood Inn & Trailer Park in Santa Rosa. It sold for $2.625 million, according to Atlas Hospitality Group. CHERYL SARFATY | NORTH BAY BUSINESS JOURNAL | August 14, 2025 Hotel sales in California through the first six months of the year showed no signs of overcoming the strain of the nation’s economic pressures, according to a new industry report. As of June 30, individual hotel sales volume in the state was down year over year by 7.4%, and the median price per room was down 2.5%, according to Atlas Hospitality Group, a Newport Beach-based real estate brokerage. The firm recently released its midyear California hotel sales survey on the heels of its hotel development survey, which the Business Journal reported July 23. Atlas also produces year-end surveys in both hotel categories. “We continue to see a disconnect between buyer and seller expectations,” said Alan X. Reay, president of Atlas. “The higher interest rates combined with increased operating costs, especially in labor and insurance, is dampening sales activity.” That is certainly evident in the North Bay. Six months into 2025, three hotels were sold compared to 13 a year…
Posted on
New Report Shows California Hotel Sales Dropping
Hotel sales are down throughout California and the North Bay is no exception. That is according to a new report from Atlas Hospitality Group. Through the first six months of this year, three hotels in the North Bay were sold. That’s compared to 13 during the same period in 2024. Two of the sales were in Sonoma County, with the other in Lake County. Statewide, year-over-year hotel sales are down by about seven-and-a-half percent. The median price per hotel room is down by two-and-a-half percent.
Posted on
San Jose hotel may be transformed into memory and residential care hub
Proposal arrives on heels of weak Bay Area hotel market By George Avalos | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: August 8, 2025 at 5:30 AM PDT SAN JOSE — The Aloft hotel in western San Jose could be converted into a residential care hub for seniors, documents on file with city planners show. At 4241 Moorpark Ave., Aloft San Jose Cupertino would become an 80-unit residential care facility with an assisted living and memory complex, according to the proposal submitted by Shashi Group, the hotel’s manager. Shashi Group owns or operates several Bay Area hotels. The owner of the hotel property is listed as the Perusina Family Trust, whose principals include Danford Perusina, according to a database of Santa Clara County property owners. The conversion is expected to consist of “limited exterior changes and some interior renovations to accommodate the new use,” according to the documents filed with the city. A timeline for the conversion wasn’t immediately known. “This conversion plan is more of a reflection of the current hotel market rather than problems with the brand,” said Alan Reay, principal executive with Atlas Hospitality Group, which tracks the California lodging market. “Aloft is a good brand.” This sort of shift makes sense considering the widening…
Posted on
San Diego hotel sales inch upward amid statewide slump
While San Diego is positioned well in the hotel market, sales statewide are expected to continue to slow. By Lori Weisberg | The San Diego Union-Tribune PUBLISHED: August 5, 2025 at 5:30 AM PDT Even amid high interest rates and rising operating costs, hotels in San Diego County are selling a bit more briskly than in all of California, which is experiencing a continued slump in transactions. The latest sales report from the Atlas Hospitality Group reveals lagging sales across the state during the first half of this year, down by 7% compared to the same period a year earlier. While the total dollar volume rose by 17% in California, the median price paid per room was down 2.5%. Locally, seven hotels changed hands in the first six months of the year compared to six a year ago, but the number of rooms involved in those transactions rose exponentially, from 596 to 1,038, an increase of more than 74 percent, Atlas reported. That’s because there were a couple of pricey sales — the 288-room Residence Inn La Jolla, which sold for $79.3 million, and the 334-room Courtyard hotel in downtown San Diego, which went for $67.2 million. In all, the sales volume for…
Lender buys The Line Hotel in Koreatown for $68M
Foreclosure handover marks third-priciest hotel sale in California this year Aug 1, 2025, 12:33 PM PDT By TRD Staff The lender of The Line Hotel in Koreatown has bought back the lodging out of foreclosure in a landmark sale for Los Angeles this year. Corten Real Estate Partners purchased the hotel at 3515 Wilshire Boulevard from RECP Sydell Wilshire for $68 million, Bisnow reported, citing a midyear report from Atlas Hospitality Group. The foreclosure sale marks the largest hotel transaction in Los Angeles County so far this year. RECP Sydell Wilshire defaulted on a $100 million loan from Corten in February after failing to make a critical payment the previous month. The total amount of debt on the 384-room hotel is about $106 million, according to Bisnow. “Higher interest rates and continued disconnect between buyer and seller price expectations continue to create downward pressure on hotel sales transactions,” Alan Reay, president of Atlas Hospitality Group, said in Atlas’ report, according to The Mercury News. Aside from The Line Hotel, the other two priciest hotel sales in California in the first half of the year were also foreclosure sales. Earlier this month, the Oakland Marriott City Center in downtown Oakland was taken back by lender Invesco in a foreclosure…
