Atlas in the news
Bay Area hotel buying binge sprouts, puts COVID in “rear-view mirror”
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…
L.A. Rising: Burbank
BY: HANNAH MADANS WELK | FEBRUARY 28, 2022 https://labusinessjournal.com/special-reports/l-a-rising-burbank/ Numerous projects are either under construction or in development in Burbank. Part of the Tri-Cities market, Burbank is a media and entertainment capital, counting Walt Disney Co., ViacomCBS and Warner Bros. among its employers, that has drawn more companies and prospective tenants to the area in recent years. The high-paying jobs and quantity of employees those companies represent — and the lack of new apartment inventory on the market — make Burbank a highly attractive area to developers of all types of real estate, not just soundstages. KEY PROJECTS Second Century Location: 100 California St. Description: Second Century is a Warner Bros. expansion meant to celebrate its second century in business (the company turns 100 in 2023). The project will have two buildings with 800,000 square feet of office space. The expansion also includes the acquisition of Burbank Studios. Developers: Worthe Real Estate Group, Stockbridge Real Estate Fund Architect: Frank Gehry Estimated Completion Date: 2023 First Street Village Location: First Street and Magnolia Boulevard Description: The project will occupy three blocks in Burbank. Once completed, it will have 275 dwelling units and 18,000 square feet of restaurant and retail space. Developer: Del Rey Properties Architects: The CBA Partnership, Architects Estimated…
Hyatt-branded Kissel Uptown Oakland hotel opens downtown
Building includes recreation of 1910s architecture formerly on the site San Francisco / March 07, 2022 01:30 PM TRD Staff https://therealdeal.com/sanfrancisco/2022/03/07/hyatt-branded-kissel-uptown-oakland-hotel-opens-downtown/ A Hyatt-branded hotel opened in downtown Oakland, hoping to take advantage of more travelers as the pandemic eases and more people return to the office. The 168-room Kissel Uptown Oakland at 2455 Broadway includes a recreation of the historic 1910s Beaux-Arts structure formerly on the site, the Mercury News reported. The hotel, part of Hyatt’s Unbound Collection, also brings 74 apartment residences to the Northgate-Waverly neighborhood. An alliance of Signature Development Group and Jordan Real Estate Investment owns and developed the project. Michael Ghielmetti, Signature Development’s founder and president, said people are returning to offices in greater numbers. “We are seeing an uptick,” Ghielmetti said. “People are more comfortable with traveling, getting around, going to bars and restaurants.” The six-story hotel has a rooftop bar and lounge, meeting and conference spaces and indoor and outdoor bars. A deal to bring locally owned French restaurant Occitania is also in the works. The restaurant will be operated by chef Paul Canales, known for his other restaurant, the Spanish-themed Duende. Alan Reay, president of Atlas Hospitality Group, which tracks the California lodging market, said he expects…
Downtown Oakland Adding Two Marriott Brands
By: Jason Middleton California + Bay Area + Hospitality | March 11, 2022 https://www.connectcre.com/stories/downtown-oakland-adding-two-marriott-brands/ One hotel enters; two brands emerge. Two new Marriott-branded hotels are slated to open in downtown Oakland later this year. Expected to add 276 new rooms, the 18-story hotel at the corner of Jefferson and 15th streets, first reported by the Mercury News. Hawkins Way Capital bought the site, at 1431 Jefferson St., in 2019 through an affiliate for $30 million. Marriott will split the space, branded as AC Hotel (133 rooms) and Residence Inn (143 rooms), according to a news release. Externally, construction is nearly complete, with interiors well under way, including the move-in for furniture, fixture and finishes (known as the 3Fs to just about nobody). The hotel is set to open by the end of 2022. A post-pandemic boom in hotel spending shows up in research from Atlas Hospitality Group, excerpted here: In the first six months of the year, the number of hotel sales in Los Angeles County increased 188% compared to the same period in 2020. The value of these deals jumped too, skyrocketing 556% by dollar volume while the median sale price per room increased by 5%. The artists rendering is from Stanton Architecture.
New hotel and apartment building with rooftop lounge now open in Uptown Oakland
By Wesley Severson – Published on March 11, 2022. https://hoodline.com/2022/03/new-hotel-and-apartment-building-with-rooftop-lounge-now-open-in-uptown/ A new hotel and apartment complex with a rooftop lounge is now open for guests and renters in Oakland’s Uptown District, at 2455 Broadway. The 168-room hotel portion of Kissel Uptown Oakland is operated by Hyatt as part of its Unbound Collection of lodging establishments. The 74-unit apartment portion of the six-story building is being called Monogram at Kissel. It features studio apartments along with one, two, and three-bedroom units that range in price from around $2,200 to $4,200 per month. Both sections of the new establishment, which is owned and was developed by Signature Development Group and Jordan Real Estate Investment, will have access to a new rooftop bar called HIGH 5IVE. “It’s the only roof bar of its kind that we are aware of in Oakland. People are pretty excited about the hotel so far,” Michael Ghielmetti with Signature Development told Bay Area News Group. Food is also available at HIGH 5IVE along with a restaurant that has also opened inside Kissel Uptown called Otto’s Cafe. According to Bay Area News Group, a French restaurant called Occitania is getting ready to open soon and is being created by well-known local chef Paul Canales, who…
LA Hotels Sales Spike in 2021, Bookings Still Recovering
BY: HANNAH MADANS WELK | MARCH 7, 2022 https://labusinessjournal.com/real-estate/large-number-of-l-a-hotels-sold-in-2021/ Hotel sales spiked in 2021 even as room bookings failed to hit pre-pandemic levels. In L.A. County, hotel transactions increased 26.2% from 61 to 77. Total dollar volume, meanwhile, rose a staggering 145.5% to $1.9 billion, the highest of any county in California, according to data from Atlas Hospitality Group. “The one word that sums up the 2021 survey is ‘record,’” said Alan Reay, president of Irvine-based Atlas Hospitality. “It’s nothing short of phenomenal coming off of the Covid years. This really showed a couple of things: One was a tremendous amount of capital raised in anticipation of hotel closures, and that didn’t happen. Then, you had a lot of transactions close with Project Homekey, the government program to purchase hotels, and those sellers were in the market for exchanges, and then you had portfolio sales.” Buck Harris, a senior director at Cushman & Wakefield Inc., added that, “Hotel markets were starting to thrive before delta and omicron hit.” Once the Covid strains hit, however, Harris said there were some concerns, but overall hotel sales were still strong last year. “There was definitely more activity, more volume in ’21 … There…
Big San Jose hotel sets early April reopening, ends one-year shutdown
Owner of Signia by Hilton hotel in San Jose says early April date is “firm” By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: March 14, 2022 at 8:30 a.m. | UPDATED: March 14, 2022 at 4:26 p.m. SAN JOSE — A big hotel in downtown San Jose that’s been closed for about a year has set a “firm date” for early April to reopen its doors to guests and is already taking reservations, the lodging’s owner says. Signia by Hilton, a double-tower hotel at 170 S. Market St. — formerly the location of the Fairmont San Jose — is slated to open the first week in April, said Sam Hirbod, the principal owner of the landmark lodging place. “April 7 is the opening date. That is firm,” Hirbod said. “We are taking reservations now.” The new hotel, located near the downtown San Jose convention center, also intends to offer unique dining and drinking experiences that the owners hope will be a magnet for both out-of-town visitors and people who live in Silicon Valley and other parts of the Bay Area. “We have elevated the culinary experience in the lounge, the restaurants and for banquets,” Hirbod said. “We want people to have a reason to…
Hotel openings blossom in Bay Area amid COVID lodging recovery
Six hotels are bringing about 1,800 rooms to four Bay Area cities By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: March 17, 2022 at 9:50 a.m. | UPDATED: March 18, 2022 at 3:49 a.m. https://www.mercurynews.com/2022/03/17/hotel-silicon-valley-bay-area-covid-real-estate-economy-tech-recover/ SAN JOSE — A burst of hotel openings in Santa Clara County and the East Bay points to widening confidence that the Bay Area lodging market is beginning to shake off its coronavirus-linked ailments. Six hotels have either opened or are close to opening their doors in downtown San Jose, downtown Oakland, Sunnyvale and Milpitas, raising hopes of a turnaround in the regional lodging sector. Still, while a recovery might be in the cards for the hotel markets in the Bay Area, the lodging industry won’t get back to full strength right away, cautioned Alan Reay, president of Atlas Hospitality Group. “In the long term, as offices start getting back to normal, business will pick up, but this will not happen overnight,” Reay said. Here are hotels involved in the current burst of openings: — Signia by Hilton San Jose, an 805-room double-tower hotel in downtown San Jose that had closed amid bankruptcy and coronavirus-linked difficulties, is slated to open in early April. For decades, the hotel, at 170…
Lodging leaders discuss California’s comeback at CLIC
By Donald Morrison | Mar 18, 2022 07:29am https://www.hotelmanagement.net/operate/lodging-leaders-discuss-californias-comeback-clic ANAHEIM, CALIF. – Market recovery, inflation and high construction costs in a post-pandemic world were three of the hot topics discussed by lodging industry leaders at this year’s recent California Lodging Investment Conference. The fifth annual CLIC event was held in-person for the first time in two years on March 10 at the JW Marriott Anaheim (Calif.) Resort. Just over 250 attendees registered for the event, according to CLIC’s founder and president, Craig Sullivan. “Everybody here is in the California hotel market, that’s all we’re focused on,” Sullivan said. “It’s the first time any of us have been together in-person in over two years.” The event kicked off with a keynote address from Bruce Ford, SVP and director of global business development at Lodging Econometrics, who used a range of lodging data to paint a picture of the state’s lodging industry and how it plans to recover in the wake of the COVID-19 pandemic. “Much of what owners and management companies have faced over the past 24 months has been no return on investment,” Ford said. “They’re interested in renovations today. They’re interested in brand conversions. They’re interested in getting back to…
The Line Gets $100M Loan
BY: HANNAH MADANS WELK | MARCH 28, 2022 https://labusinessjournal.com/tourism/hotels/the-line-gets-100m-loan/ The Line LA, a popular hotel in Koreatown, has received a $100 million loan. The Line is a 384-room hospitality property at 3515 Wilshire Blvd. Institutional Property Advisors, a division of Marcus & Millichap’s Jordan Ray, Steven Buchwald, Jamie Matheny and Lexington Henn arranged the financing for Yucaipa Cos., controlled by billionaire and Chairman Ron Burkle. “The property is strategically located in Koreatown right between Hollywood and Downtown L.A. Locals and guests love the restaurants, bars and active lobby scene. It’s a great midway point to meet in L.A.” Ray said in a statement. “We created a market and structured a very attractive deal that met the client’s needs and vision for the asset.” Corten Real Estate Partners provided the loan. “The Line LA represented a terrific opportunity for Corten to offer a tailored capital solution on a unique lifestyle hospitality asset in a high barrier-to-entry market that is beginning to recover from the pandemic,” Brandon Flury, a principal at Corten Real Estate, said in a statement. “We look forward to seeing the hotel restabilize and reach its full potential under the sponsor’s blue-chip stewardship.” The hotel market is recovering. In…
Hotel-To-Industrial Demolition Plan ShowsStrength Of Demand For Warehouses
June 13, 2022 | Bianca Barragan, Bisnow Southern California https://www.bisnow.com/los-angeles/news/industrial/hotel-to-industrial-conversion-hotel-fullerton-rexford-113391 Rexford Industrial (https://www.bisnow.com/tags/rexford-industrial) spent$45M to buy the Hotel Fullerton (https://www.bisnow.com/tags/hotelfullerton), a 1960s-era property on 7 acres just off the 91 Freeway inFullerton, but Rexford isn’t getting into the hotel business. Instead, the deal offers yet another sign of developers getting creative to find opportunities to build more industrial space in the tight infill market. The Hotel Fullerton is the latest in a string of redevelopment opportunities Rexford has pursued. The company plans to demolish the existing hotel and build a 140K SF, Class-A industrial (https://www.bisnow.com/tags/class-a-industrial) building, according to a Cushman & Wakefield release. The roughly 250-room hotel at 1500 South Raymond Ave. is industrially zoned, making that element of conversion theoretically smoother. In the past, cities have been hesitant to approve conversion of hotels to anything other than housing for lower-income or formerly unhoused tenants, which is in demand throughout the state. This property won’t require the developers to go through the process of trying to get those approvals, as the site already has the zoning for the use Rexford intends. Representatives for Rexford and the seller, Huoyen International Inc., did not immediately respond to requests for comment. “This sale…
Trinity, Oaktree Capital Buy Luxury Southern California Resort Hotel From Hyatt
Sale Points to Rebound for Coachella Valley Hospitality Industry After Two Years of Pandemic By Randyl Drummer | CoStar News April 5, 2022 | 3:49 P.M. https://www.costar.com/article/1084862773/trinity-oaktree-capital-buy-luxury-southern-california-resort-hotel-from-hyatt The Hyatt Regency Indian Wells Resort & Spa near Palm Springs, California, has been sold, the second sale of a large Coachella Valley resort hotel since December as the desert region’s hospitality sector rebounds from the pandemic. An affiliate of Honolulu real estate investor Trinity Real Estate Investments joined with Los Angeles-based Oaktree Capital Management to buy the 530-room hotel at 44600 Indian Wells Lane from hospitality giant Hyatt Corp., the joint venture said in a statement. Terms of the deal were not disclosed. The transaction follows global investor Blackstone’s sale at the end of 2021 of the historic 785-room La Quinta Resort & Club near Palm Springs to a British private equity firm for $255 million, the largest total price paid for a Southern California hotel in more than two years. That deal came in at about $325,000 per room. The sales, along with the return this month of two of the nation’s largest music festivals for the first time since 2019, could be signs of a rebound for the Coachella Valley, where the Greater…
