Atlas in the news

By: Andrew TurnerNovember 3, 2022 A Laguna Beach luxury resort could soon have new ownership, as reports have surfaced indicating that billionaire Tilman Fertitta has shown interest in acquiring the Montage Laguna Beach. The resort is owned by China-based Dajia Insurance Group Co., which has asked for as much as $700 million for the sale of the South Laguna hotel located at 30801 S. Coast Highway, according to the Orange County Business Journal. Bloomberg News reported that Fertitta is on the cusp of a $650-million deal to purchase the Montage, citing sources familiar with the situation who spoke on the condition of anonymity due to the private nature of the discussions. A 30-acre beachfront property that overlooks the Pacific Ocean from a coastal bluff, the Montage has 260 guestrooms, a hotel spokesperson confirmed. The resort opened its doors in 2003. The reported purchase price of $650 million would bring the price tag to $2.5 million per room. Alan Reay, the president of Atlas Hospitality Group in Newport Beach, described the Montage as “irreplaceable” oceanfront real estate and said the price-per-room average would rank second among hotel sales in state history. In November, the 59-room Alila Ventana Inn and Spa in…

News Source: www.lajolla.com November 3, 2022 The Marriott La Jolla has been sold in a $187.6 million deal that marks the second most expensive San Diego hotel sale this year. Marriott La Jolla is a 376-room property that was first built in 1985. According to the San Diego Union-Tribune, it has been sold as part of a portfolio sale worth multiple billions of dollars that closed last week. This isn’t the first time in recent history that the Marriott La Jolla has changed ownership. Back in 2016, Carey Watermark Investors bought the hotel on La Jolla Village Drive for $131 million. Carey Watermark Investors, which has since been renamed Watermark Lodging Trust, agreed earlier in 2022 to an acquisition deal by Brookfield Asset Management. Watermark’s holdings, which comprise more than 8,100 rooms at luxury properties across the globe, are now owned by Brookfield. For comparison, estimates suggest that Marriott La Jolla sold for about $188 million — around $500,000 a room. A few months ago, the Hyatt Regency La Jolla sold for $216 million. Because that was a 416-room hotel, the sale averaged $518,000 a room. According to hotel Alan Reay broker of Atlas Hospitality Group, the sale was a great…

The buyer is rumored to be restaurant and hotel owner Tilman Fertitta By: Staff & News Service ReportsNovember 2, 2022 Is the Montage Laguna Beach luxury resort about to get a new owner? Bloomberg News reports billionaire Tilman Fertitta is close to acquiring the 250-room oceanview hotel in Orange County for about $650 million, according to people with knowledge of the matter who asked not to be identified because the discussions are private. The Wall Street Journal reported a possible Montage sale without naming a buyer and put the price tag near $700 million. The seller is China’s Dajia Insurance Group Co., which took over most of the operations of Anbang Insurance Group Co. The group is shedding much of its hotel portfolio including the Orange County resort. A representative for Fertitta declined to comment. Dajia officials did not respond to a request for comment. Fertitta, who built his fortune from the restaurant company Landry’s, also owns hotels including multiple Golden Nugget casinos and the upscale Post Oak Hotel in Houston. He also owns pro basketball’s Houston Rockets. Plus, Fertitta recently reported holding a 6.2% stake in Wynn Resorts Ltd., the operator of hotels and casinos in Las Vegas and…

As leisure travel made a comeback last year, deals for hotels worth $25M or more reached levels not seen since 2018. Total sales nearly quadrupled in 2021 compared to 2020, reaching $21.5B, Real Estate Alert reported. That number represents a 265% year-over-year increase, demonstrating investors’ confidence in the travel sector’s recovery and rising interest in deploying capital into the resurgent property type. Many of the top brokers increased sales by four or five times what they were closing in 2020. Hodges Ward Elliott earned the title of most active broker last year with sales totaling $5.19B, capturing a 27.8% market share, according to data from Real Estate Alert’s Deal Database. CBRE did $3.97B in sales, earning the second-highest total sales last year. Eastdil Secured brokered $3.49B, placing it in third despite increasing sales fivefold. JLL doubled its sales volume to just over $3B, but its overall market share dropped from 29.4% to 16.2%. The hotel industry finished 2021 with something of a bumpy landing. Though the industry reportedly set records during Thanksgiving week, the rise of the omicron variant increased uncertainty about cancellations. But that hasn’t affected investors’ confidence in the sector’s recovery, which Atlas Hospitality President Alan Reay in January predicted would rise on the back of leisure travel in “A” locations like…

More than half a billion dollars worth of S.F. hotels changed hands in 2021. We knew it was a hot year for California hotel flipping in2021, but the numbers out this week from Atlas Hospitality’s year-end hotel sales survey show just how unprecedented it really has been.Case in point: On Monday morning it was announced the230-room Hyatt Place San Francisco Downtown, located on Third Street steps away from Oracle Park, was sold last week to Utah-based real estate investment firm Dynamic City Capital for an undisclosed price, per the buyer’s bulletin. The seller was Stonebridge Cos. The hotel property sold for$105,856,000, according to a calculation from the property transfer tax found in city records, but the buyer might have paid more when furniture and fixtures are included. That puts the key price at $460,243, about $2,000 shy of the price AWH Partners paid last year in its $87.5 million deal for the Villa Florence San Francisco on Union Square from Pebblebrook Hotel Trust. And it’s about $40,000 more than the median key price among San Francisco’s six hotel deals last year. Fueled by low interest rates, a glut of investment capital and an “only up from here” attitude, real estate…

As the hospitality industry continues to recover from the coronavirus pandemic, California hotels set new investment records in 2021. A 2021 year-end report from hotel brokerage Atlas Hospitality Group found individual hotel sales in the state surged 71% over the previous year to a record 510 transactions. Dollar volume for hotels also hit a record $9.9B, and a record number of hotels sold for more than $1M per room. “The combination of low interest rates and the tremendous amount of investment capital resulted in unprecedented sales volume,” Atlas Hospitality Group President Alan Reay wrote in the report. “Based on the interest we are seeing very early in 2022 from buyers, it appears that there is no letup in the demand or appetite for California hotels.” LA County was the leader in the state for both number of hotels sold and total dollar volume, with 77 hotels selling for a total volume of approximately $1.9B. Of the major counties tracked by Atlas, only San Francisco saw a decrease in individual sales, with six hotels trading last year, down 33% from 2020. Dollar volume, however, nearly doubled, with the average price per room increasing nearly 70%. The state’s most expensive sale on a per-room basis was the 59-room Allia Ventana Inn & Spa in Big…

Today’s Headlines: Frontier Airlines To Buy Spirit in $6.6 Billion Deal; Travel Industry Prepares for Endemic COVID-19; California Hotel Sales Break Multiple Records; Airfares Surge for Spring and Summer Travel; Future of Hotel Minibars Questioned in Age of Mobile Delivery https://www.costar.com/article/1421962403/5-things-to-know-for-feb-7 By Bryan Wroten | Hotel News Now February 7, 2022 | 7:23 AM Editor’s Note: Some linked articles may be behind subscription paywalls. 1. Frontier Airlines To Buy Spirit in $6.6 Billion Deal Frontier Airlines will buy Spirit Airlines for $2.9 billion in a cash-and-stock deal, but the total price is $6.6 billion when accounting for the assumption of debt and other liabilities, the Associated Press reports. The deal would create the fifth-largest airline in the U.S. “This transaction is centered around creating an aggressive ultra-low fare competitor to serve our guests even better, expand career opportunities for our team members and increase competitive pressure, resulting in more consumer-friendly fares for the flying public,” Spirit CEO Ted Christie III said in a prepared statement. 2. Travel Industry Prepares for Endemic COVID-19 As countries loosen coronavirus restrictions, and ease lockdown measures and testing requirements for vaccinated individuals, the travel industry is preparing for COVID-19 to transition from pandemic status to endemic. Travel industry…

Survey Reports 510 Deals That Total Nearly $10 Billion https://www.costar.com/article/1977010959/large-scale-sales-shatter-california-hotel-transactions-records By Bryan Wroten | Hotel News Now February 7, 2022 | 6:29 AM By every measure, 2021 was a record year for California hotel deals. The California Hotel Sales Survey 2021 Year-End reports there were 510 hotel deals for the year, up 71% compared to 2020 and above the 2014 record of 399 deals. The total dollar volume amounted to $9.93 billion, a 204% increase over last year and more than the 2015 record of $9.5 billion. At $265 million, the Montage Healdsburg was the state’s most expensive deal. The state also set new several records prices per key. The median price per key reached $137,877, a 23% increase over 2020 and higher than the previous record of $121,907 in 2019. Thirteen deals included a price of $1 million a key, another record, and that includes the Alila Ventana Big Sur twice because it was sold two times in the year for more than $2.5 million each time. Another three hotels sold for more than $2 million per key as well, another record. Looking back through company records, Atlas President Alan Reay said California has never sold more than 400 hotels…

BYHANNAH MADANS WELK FEBRUARY 14, 2022 https://labusinessjournal.com/special-reports/hotel-industry-sees-record-high-openings/ Pandemic-related travel restrictions are still being observed in many places, but you wouldn’t know it based on the number of hotel rooms that opened in the Golden State last year. In 2021, California set a record for the number of hotel rooms to open in a year, with 12,027 rooms. L.A. County had the highest number of hotels and hotel rooms to open out of any county, with 21 hotels and 3,249 rooms opening last year. It was a 195% room increase from 2020, according to data from Irvine-based Atlas Hospitality Group. But the numbers may not tell the full story. “The survey might be a little skewed,” said Alan Reay, president of Atlas Hospitality. “A lot of developers postponed opening their hotels in the last part of 2020, so that might have bumped up the number of properties that opened in 2021. Having said that … there’s a lot of optimism in the hotel business.” Brandon Feighner, an executive vice president at CBRE Group Inc.’s CBRE Hotels Advisory practice, agreed. “Hotel development in L.A. is a long and arduous process,” Feighner said. “A number of hotels that opened started pre-pandemic but took…

Orange County Investor Buys Two Properties in $72 Million Deal By Lou Hirsh | CoStar News February 11, 2022 | 2:44 P.M. https://product.costar.com/home/news/shared/24528047?utm_source=newsletter&utm_medium=email&utm_campaign=personalized&utm_content=p9&t=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJjb250YWN0SWQiOiIxOTgzMzU2IiwiY3VsdHVyZUNvZGUiOiJlbi1VUyIsImlhdCI6MTY0NDg1MDEwNX0.ereO77EpmDRczmbj-TLkn_KnVw-BNlS13Wt-IaqouW0 Two hotels with nearly 300 combined rooms in San Diego’s Old Town neighborhood were sold for $72 million as hospitality property values have been rising across the state amid an improving tourism economy. Investor MIG Real Estate of Newport Beach, California, acquired the 176-room Courtyard San Diego Old Town, built in 1987 and renovated in 2016, at 2435 Jefferson St., and the 123-room Fairfield Inn & Suites San Diego Old Town, built in 1988 and renovated in 2012, at 3900-3902 Old Town Ave., according to CoStar and public data. The seller was investor Clearview Hotel Capital of Newport Beach, and the per-room price was on par with the regional average of approximately $240,000 over the past 12 months, according to CoStar hospitality data. San Diego hotel investment topped $1.1 billion during 2021, an increase of 290% from the prior year, according to a new report from hotel brokerage and research firm Atlas Hospitality Group, which reported per-room deal pricing rising more than 20%. This came as California saw hotel sales reach a record $9.9 billion, up 204% from the prior year, aided by a…

Investors launch shopping spree for Bay Area, California hotels By: GEORGE AVALOSGEORGE AVALOS | gavalos@comgavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: February 11, 2022 at 10:30 a.m. | UPDATED: February 14, 2022 at 2:39 p.m. https://www.mercurynews.com/2022/02/11/bay-area-hotel-buy-binge-covid-rear-view-mirror-economy-real-estate/ California’s the California’s hotel market experienced a boom year for sales activity, a surge that included the Bay and Bay Area, even though coronavirus-linked economic ailments continue to afflict the state and this this region, a new report shows. “Buyers and lenders have put COVID-19 in their rear-view mirrors,” Atlas Hospitality Group stated their stated as part of its new report on buying activity for hotels in California. “They have their sights sights firmly on the future.” In Northern California, investors paid an aggregate $4.92 billion for hotels during 2021, which was the was more than triple, or a 254% increase from the $1.39 billion buyers paid for hotels in the region lodging region in 2020, reported Irvine-based Atlas Hospitality, which tracks the California lodging market. In Southern California, investors paid $5.01 billion to buy hotels in 2021, more than twice as much much as the $1.87 billion that buyers paid for hotels in that region in 2020, or a 167% increase. Statewide, combining…