Atlas in the news
Race for Rooms as Grand Prix of Long Beach Accelerates Greater LA’s Hospitality Rebound
Some Room Rates Exceed 2019 Levels in Greater LA, but Occupancy Still Trails Pre-Pandemic Levels By Jack Witthaus | CoStar News April 8, 2022 | 1:30 P.M. https://product.costar.com/home/news/139979861 The Grand Prix of Long Beach has supercharged the region’s hotels, driving occupancy back to pre-pandemic levels and boosting room rates at least for a weekend, an indication events are returning to pre-pandemic popularity. Josef Newgarden won this year’s IndyCar annual event, the headline race of five held in Los Angeles County’s second-largest city Friday through Sunday. The competition typically draws about 185,000 fans to its events and races, with about three-quarters from Southern California and the rest from other parts of the United States, Canada, Japan and Europe, according to the nonprofit Grand Prix Foundation of Long Beach. The race has an estimated $63 million economic impact for the region and a $34 million impact for the city of Long Beach, according to the group. This year, hotels mostly are sold out around Long Beach because of demand from the race, according to Samantha Mehlinger, vice president of communications of the Long Beach Convention & Visitors Bureau. That’s a good sign for retailers — and their landlords — across the country because…
Orange County Hotel Sells Amid Tourism Rebound in Disneyland’s Hometown
Utah Investor Acquires Anaheim Property from Special-Services Firm for $57.5 Million By Lou Hirsh | CoStar News April 14, 2022 | 4:28 P.M. https://product.costar.com/home/news/shared/1875836968?utm_source=newsletter&utm_medium=email&utm_campaign=personalized&utm_content=p4&t=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJjb250YWN0SWQiOiIxOTgzMzU2IiwiY3VsdHVyZUNvZGUiOiJlbi1VUyIsImlhdCI6MTY1MDAyODkwN30.jrdMV7aFSllbCEkb8yaiQYe8-OMQxU3PooYC_qBsuqg A Utah investor acquired an Anaheim, California, hotel for approximately $57.5 million, as Disneyland’s tourism-focused home region rebounds from effects of the pandemic. Provo-based Dynamic City Capital purchased the 190-room Portofino Inn & Suites, built in 1978 at 1831 S. Harbor Blvd., for a price amounting to approximately $303,000 per room, according to CoStar data and public filings. The property was acquired from a special-services firm that was assigned the property after a prior owner defaulted on a loan. The transaction price is among the largest of the past year for Orange County hotels, according to CoStar data, and underscores an overall rebound for the region’s hospitality industry. Hotels, stores and other businesses dependent on visitor spending were hit hard for more than a year after the pandemic’s start in March 2020, as Disneyland Resort and Anaheim’s convention center remained closed or operating at limited capacities. “We are seeing very strong interest in Orange County hotels and in Anaheim in particular,” said Alan Reay, president of hotel brokerage and research firm Atlas Hospitality Group, which was not directly involved…
Downtown San Jose hotel is part of $3.8 billion nationwide deal
Deal points to rising values for hotels in Bay Area By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: May 12, 2022 at 11:41 a.m. | UPDATED: May 16, 2022 at 1:11 p.m. https://www.mercurynews.com/2022/05/12/downtown-san-jose-marriott-hotel-3-8-billion-real-estate-deal-covid/ SAN JOSE — Three Bay Area hotels are part of a coast-to-coast lodging deal priced at $3.8 billion that gives one hotel in the transaction, the Marriott in downtown San Jose, a value that tops more than $200 million. Brookfield Real Estate Funds, a major investment firm, has bought Watermark Lodging Trust for $3.8 billion. The transaction gives Brookfield ownership of 25 hotel properties totaling 8,163 total rooms. Brookfield estimates that it paid an average of $481,300 a key — or room — for the hotel portfolio, which is roughly one-third resort hotels and two-thirds full-service hotels in an array of urban markets. At that per-key price, the 510-room San Jose Marriott at 301 S. Market St. downtown could be valued at $245 million. OpenComps, which tracks the hotel investment market, estimated that the price for the San Jose Marriott could be closer to $237 million, however. Either scenario would represent a hefty jump from both of the prior purchase prices for the hotel. In 2013, CBRE paid $83 million for…
Beverly Hills is getting an ultra-luxe hotel chain so exclusive you’ve probably never heard of it
BY ROGER VINCENT | STAFF WRITER JUNE 9, 2022 5 AM PT https://www.latimes.com/business/story/2022-06-09/beverly-hills-development-announces-ultra-luxury-hotel-aman At the Aman resort in the Turks and Caicos Islands, guest villas come with infinity pools and butlers who serve you a private romantic dinner on the beach. In a remote Utah desert, Aman guests can “camp” in tented pavilions with plunge pools and king-size beds. The Swiss company, owned by Russian real estate developer Vlad Doronin, was described by Forbes as “the world’s most preeminent resort brand” and attracts such notably affluent guests as Bill Gates, Mark Zuckerberg, and George and Amal Clooney. Launched in Thailand, Aman is known for its small resorts in exotic tropical locales or historically significant properties such as a 16th century palazzo in Venice. Now the celebrity-beloved ultra-luxe hospitality brand is coming to Beverly Hills as part of a $2-billion garden-like residential complex called One Beverly Hills. Its developers revealed Thursday that Aman will operate the hotel, a private club and some Aman-branded residences in a lushly landscaped oasis next to the storied Beverly Hilton hotel, where stars gather for the annual Golden Globe Awards. One Beverly Hills, announced in 2020, has city approval for a hotel with 42 rooms — all of them suites — and 37 hotel-branded condominiums, where owners can…
Alila Ventana Big Sur Sells Again After 3 Months, Reaching $150MM
https://news.theregistrysf.com/alila-ventana-big-sur-sells-again-after-3-months-reaching-150mm/ By Vladimir Bosanac After just three months of ownership, Hyatt Hotels Corporation has flipped the 59-room Alila Ventana Big Sur for $150 million, or around $2.608 million per room. This price point is around $2 million more than what the company paid in June when it acquired the hotel from Geolo Capital, the private equity investment arm of the John Pritzker family office, and its joint-venture partner Wanxiang America Real Estate, according to reporting by The Registry. The newest buyer is Bethesda, MD-based Host Hotels & Resorts, which has entered into a long-term management agreement with Hyatt. This latest sale represents the second highest price per room ever paid in the United States for a hotel property. The sale of the Plaza Hotel in New York at $2.608 million per room is still the highest watermark achieved for the industry in this country. Host estimates that the transaction represents 9.3 times 2021 estimated hotel EBITDA, according to sources. When Hyatt purchased the property earlier this summer, John Pritzker, Geolo founding partner and director said, “We saw substantial unrealized value in controlling 59 of Big Sur’s 100 available full-service guest rooms and understood the potential to raise average daily rates following a comprehensive renovation, rebrand and repositioning.” Originally…
Wine Country gets its second $2 million per key hotel sale in 2021
https://www.bizjournals.com/sanfrancisco/news/2021/11/02/four-seasons-napa-valley-sunstone-alcion-sale.html By Alex Barreira Staff Reporter, San Francisco Business Times Nov 2, 2021 Updated Nov 3, 2021, 4:54pm PDT The high-end hotel acquisition market is still red hot. Casein point: The fi ve-star luxury Four Seasons Napa Valleyresort is being sold for a near-record per key price of $2.1million, according to a report in the Wall Street Journal. Irvine-based Sunstone Hotel Investors Inc. is purchasing the 85-room hotel for about $175 million from Boston-based property fund manager Alcion Ventures, the Journal reports, citing people close to the transaction. If the deal closes in the fourth quarter as anticipated, the $2.1 million key price would amount to the second-highest U.S. hotel deal ever, eclipsed only by Hyatt Hotels Corp.’s acquisition of the Ventana Big Sur resort this summer at $2.5 million per key. The Napa Four Seasons, located at the base of Mount St. Helena and replete within a working winery, opened Oct. 1.It boasts some of the highest hotel rates in the country — at over $2,200 for a standard guest room for this Saturday night, per its website. Momentum for high-end hotel deals — particularly luxury resorts in destination nonurban markets such as Wine Country — has been undeterred by the pandemic…
AWH Partners purchases Silicon Valley hotel; adds to Bay Area portfolio
https://therealdeal.com/sanfrancisco/2021/09/15/awh-partners-purchases-silicon-valley-hotel-adds-to-bay-area-portfolio/ The Hilton Garden Inn Fremont Milpitas landed a buyer that has been snatching up hotel properties in the Bay Area San Francisco / September 15, 2021 04:25 PM TRD Staff The Hilton Garden Inn Fremont Milpitas landed a buyer that has been snatching up hotel properties in the Bay Area. AWH Partners, which recently purchased the historic Villa Florence Hotel in Union Square for $87.5 million, bought the Hilton property in Fremont for $38.9 million in an all-cash deal, Mercury News reported. The property, which completed construction earlier this year, features 145 rooms, a fitness center, a business center and an indoor swimming pool. There is also a restaurant and 24-hour market included in the hotel. This latest purchase suggests the hotel industry is bouncing back from the effects of the Covid-19 pandemic. Alan Reay, president of Atlas Hospitality Group, which monitors the lodging market in California, said buyers are starting to look at the bigger picture and plan for the long term. “The product type of this hotel is the kind of product that is coming back faster after Covid than the major full-service hotels,” Reay said. “This hotel typically has a much better profit margin than the really big hotels. It’s a very…
No room at the inn?
https://www.sonomanews.com/article/news/no-room-at-the-inn/ LORNA SHERIDAN INDEX-TRIBUNE MANAGING EDITOR August 19, 2021, 5:30PM Sonoma’s largest hotels Fairmont Sonoma Mission Inn: 226 guest rooms. The Lodge at Sonoma: 182 rooms. Best Western Sonoma Valley Inn: 82 rooms. MacArthur Place: 64 rooms (with a current proposal to add 11 more). El Pubelo Inn: 53 rooms. The rest have fewer than 50. It’s not your imagination. Downtown Sonoma is chock-a-block with tourists. Local hotels are boasting 80-to-100% occupancy rates. “The past few months have been some of the best in the MacArthur Place’s 20-year history with record average daily rates and record-breaking occupancies consistently over 80%,” said Chad Parson, CEO of Lat33 Capital (formerly IMH Financial), which has owned MacArthur Place since 2017. Lodge at Sonoma General Manager Chris Wingerberg described business as “strong and very comparable to 2019.” Across town at El Pueblo Inn, General Manager Aranda Tines told the Index-Tribune the hotel has been booked solid since June, including most weekdays — something the staff there can’t remember ever experiencing before. Up Highway 12, Michele Heston of the Fairmont Sonoma Mission Inn described occupancy levels as “very strong (mirroring 2019 levels) due in part to a recent resurgence in weddings and family reunions.” Local…
Challenges, opportunities loom for downtown San Jose hotel’s new manager
Signia Hilton is new brand for iconic downtown San Jose hotel https://www.mercurynews.com/2021/08/19/challenge-opportunity-downtown-san-jose-hotel-manage-hilton-covid/ By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: August 19, 2021 at 11:15 a.m. | UPDATED: August 20, 2021 at 9:08 a.m. SAN JOSE — The new manager of a downtown San Jose hotel that has emerged from bankruptcy faces challenges and opportunities amid lingering side effects of the coronavirus. With a plan approved and in place to revamp the finances of the Fairmont San Jose, the next major steps for the property will include reopening the lodging and the official rebranding of the hotel as Signia Hilton San Jose. The prominence of the Hilton name could bolster the hotel’s fortunes when it begins operations as a Signia hotel, according to Alan Reay, president of Irvine-based Atlas Hospitality Group, which tracks the California lodging market. “If you are measuring Hilton’s name against Fairmont’s name, Hilton with its worldwide presence and sheet number of properties far outweigh the Fairmont name recognition,” Reay said. “Internationally and domestically, Hilton is a stronger brand and stronger name than Fairmont.” Still, the management of the new Signia Hilton San Jose will face considerable challenges to restore the 805-room hotel to top-notch financial status. That’s because the full-service…
Hotel Sales Surpass Pre-Pandemic Levels
https://labusinessjournal.com/news/2021/aug/16/hotel-sales-surpass-pre-pandemic-levels/ By Hannah Madans – Los Angeles Business Journal Monday, August 16, 2021 Hotel sales are hitting record highs, surpassing not only 2020 but 2019 levels as real estate investors who waited out early waves of the pandemic finally look to spend. 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%. Even more noteworthy is that 2021 hotel sales are outpacing 2019. In the first half of 2019, 22 hotels in L.A. traded hands for $179.8 million, or a median price of $107,863 a room. This year, the county has logged 46 transactions for a total of $846.2 million, or a median price of $153,576 a room, according to data from Atlas Hospitality Group. “It’s pretty amazing. I don’t think anyone could have predicted or forecasted that this was going to happen,” said Alan Reay, president of Atlas Hospitality. “To see this incredible rebound — not only prices but also the number of transactions — is really astounding.” Los Angeles is outpacing the…
Hotel Sales Surpass Pre-Pandemic Levels
https://labusinessjournal.com/news/2021/aug/16/hotel-sales-surpass-pre-pandemic-levels/ By Hannah Madans Monday, August 16, 2021 Hotel sales are hitting record highs, surpassing not only 2020 but 2019 levels as real estate investors who waited out early waves of the pandemic finally look to spend. 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%. Even more noteworthy is that 2021 hotel sales are outpacing 2019. In the first half of 2019, 22 hotels in L.A. traded hands for $179.8 million, or a median price of $107,863 a room. This year, the county has logged 46 transactions for a total of $846.2 million, or a median price of $153,576 a room, according to data from Atlas Hospitality Group. “It’s pretty amazing. I don’t think anyone could have predicted or forecasted that this was going to happen,” said Alan Reay, president of Atlas Hospitality. “To see this incredible rebound — not only prices but also the number of transactions — is really astounding.” Los Angeles is outpacing the rest of the state,…
California hotel purchases spike as planned more rooms are planned statewide
https://www.northbaybusinessjournal.com/article/industrynews/california-hotel-purchases-spike-as-planned-more-rooms-are-planned-statewid/ NORTH BAY BUSINESS JOURNAL August 9, 2021, 11:45AM Purchases of hotels surged in the first half of the year, especially in Northern California, a half year look by Atlas Hospitality Group shows. The report, released Tuesday, shows 243 transactions in 2021’s first six months compared to 2020, sales were up 157%. Looking only at Northern California, 141 hotels bought, triple the 47 deals in the first half of 2020. Those sales were worth $2.8 billion, up 578%. $5.26 billion spent on those 2021 deals topped the previous record set in 2015 by 23%. Compared to virus-chilled January through June of last year, total sales dollars surged by $4.3 billion or 451%. The boom in purchases has also helped drive demand to build hotels. Last month the Journal reported that in Sonoma, Marin, Napa and Solano counties, 83 hotels are in various planning stages, according to Atlas. That includes five projects with 537 rooms under construction in the North Bay. Some of these projects have been permitted for several years, and experts say some may never be completed. Atlas President Alan X. Reay told the Journal in July then there are several factors behind the spike in future hotel planning activity….
