Atlas in the news

https://www.mercurynews.com/2021/04/02/real-estate-upscale-menlo-park-hotel-seized-foreclosure-covid/ Boutique Menlo Park hotel in default on mortgage is auctioned off By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: April 2, 2021 at 5:45 a.m. | UPDATED: April 2, 2021 at 4:23 p.m. MENLO PARK — An upscale Menlo Park hotel whose owners had defaulted on a property loan has been seized through foreclosure of its loan, a grim new entry in the catalog of lodging industry woes during the coronavirus era. Park James Hotel, located at 1400 El Camino Real near downtown Menlo Park, is now owned by an affiliate of a Midwest firm whose specialties include the purchase of delinquent property loans, according to documents filed on Feb. 4 with San Mateo County officials. The hotel’s owners had become delinquent on a loan issued in 2019 by Employees Retirement Plan of Consolidated Electrical Distributors Inc., county public records show. The financing for the hotel totaled $32 million, according to county property documents. The loan went into default in September 2020 — less than a year when the financing was provided in December 2019, an unusually short period of time for commercial property financing to become delinquent. PJ Hotel, an affiliate of Illinois-based Bixby Bridge Capital, now owns the hotel, the county…

https://www.bizjournals.com/sacramento/news/2021/04/01/homekey-appraised-values.html By Renata Geraldo  –  Data Reporter Sacramento Business Journal Apr 1, 2021, 3:14pm EDT The cities of Sacramento and West Sacramento paid a total of almost $5 million above appraised market values for two motels they acquired under the Homekey program, a $600 million statewide project to purchase motels and convert them into housing for unhoused people. The Rodeway Inn in West Sacramento, which an appraiser valued at $3.38 million, was acquired by that city for $6.75 million from a limited partnership last November, documents obtained by the Business Journal show. Meanwhile, Sacramento’s La Mancha, previously called the WoodSprings Suites, was appraised at $12.6 million and acquired by the city for $14 million last September from WoodSprings’ parent company Madison Avenue P&L Enterprises Inc., according to the documents. The state’s Homekey program generally provided grants to cities, matching the market value of the motels they purchased. Sacramento and West Sacramento used public funds approved by their city councils to purchase the motels. Four other motels in the Sacramento area were purchased for the same prices as their appraisals. Local officials say there was an important factor that led them to pay above appraised values for the two properties — time. They…

https://www.eastbaytimes.com/2021/03/31/downtown-oakland-moxy-hotel-complete-construct-open-real-estate-covid/ Opportunity zone tax breaks bolster Oakland hotel’s development By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: March 31, 2021 at 12:09 p.m. | UPDATED: April 1, 2021 at 4:39 p.m. OAKLAND — Downtown Oakland’s bustling Uptown District is about to get a new Moxy Hotel, a welcome change of pace to a dismal year of coronavirus-linked business shutdowns that eviscerated the global hospitality industry. Construction has just been completed on the 172-room Moxy Oakland Downtown, a boutique lodging that will represent a rarity for the East Bay’s largest city: one of the first new hotel projects in Oakland in roughly a decade. The hotel is located at 2225 Telegraph Ave. in Oakland’s Uptown, a neighborhood of restaurants, nightspots, entertainment hubs, cocktail lounges, and theaters. The hotel was jointly developed by Tidewater Capital, a San Francisco-based real estate firm with both development and investment expertise; and Graves Hospitality, a hotel management firm with veteran expertise. “We’re pleased to open the doors of the Moxy and deliver a new placemaking component to Oakland’s vibrant culture and community,” said Kyle Winkler, director of construction with Tidewater Capital. The new Moxy officially opened on Wednesday and began taking reservations and accepting guests, the hotel’s owners said….

Multifamily, Senior Living, Student Housing Among More Popular Conversions https://www.costar.com/article/577844466?utm_source=newsletter&utm_medium=email&utm_campaign=hospitality_prospect&utm_content=p1 By Bryan Wroten Hotel News Now Mar 24, 2021 | 1:09 P.M. Both private and government buyers are finding real estate conversion opportunities with U.S. hotel owners who are reevaluating the highest and best use of their properties due to the COVID-19 pandemic. Buyers and other investors have for years looked to older hotels as a way to have a ready-built property suited for a multitude of needs: condos, affordable housing, student housing and assisted living. Some have found success in converting hotels to other real estate classes, but interest in redeveloping hotels to other uses has grown over the course of the pandemic due to the financial strain it has caused hotel owners. Converting to Other Classes Hotel owners reconsidering their properties’ highest and best use or buyers looking to redevelop a hotel take into consideration three questions, said Josh Smith, senior vice president at Hospitality Real Estate Counselors. First, they have to determine whether converting to another real estate class makes sense financially and whether the cost is feasible. Next, they have to figure out if changing from one use to another is legal. And lastly, they also need…

Court sets May schedule for sale of 15 hotels, including two in Bay Area https://www.mercurynews.com/2021/03/25/real-estate-bankrupt-bay-area-hotel-auction-covid-queen-mary/ By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: March 25, 2021 at 6:20 a.m. | UPDATED: March 25, 2021 at 10:14 a.m. SAN JOSE — A bankrupt hotel chain has won court approval for the sale of more than a dozen U.S. hotels, including two in the Bay Area, whose finances crumbled beneath economic blows that the coronavirus unleashed. The auction of the hotels is scheduled to be completed by the end of May and a private investment firm has been picked as a “stalking horse” to set a minimum bid for the 15 hotels involved in the sale, according to a bankruptcy court order. The Bay Area hotels due to be auctioned off in May are the Four Points by Sheraton at 1471 N. Fourth St. in San Jose and the Holiday Inn & Suites at 330 N. Bayshore Blvd. in San Mateo, according to documents on file with the U.S. Bankruptcy Court. The minimum price for the package of hotels is $470 million, the court files show. Monarch Alternative Capital is the bidder-to-beat in the auction. Monarch Alternative is a private investment firm that specializes in owning…

Fairmont was nearly empty during worst of the coronavirus outbreak: court papers https://www.mercurynews.com/2021/03/24/fairmont-san-jose-hotel-owner-swift-bankruptcy-case-real-estate-covid/ By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: March 24, 2021 at 5:45 a.m. | UPDATED: March 24, 2021 at 2:36 p.m. SAN JOSE — The Fairmont San Jose owners have sketched out a swift endgame for the iconic hotel’s bankruptcy case in the first version of a formal plan to reorganize the property’s wobbly finances, court papers show. Newly filed court papers in the case point to the completion of the court case about four months after the Chapter 11 bankruptcy filing on March 5. That sort of schedule could conclude the bankruptcy case by sometime in July. Under the U.S. Bankruptcy Code, debtors have the exclusive right to file a plan of reorganization for at least the first 120 days, or four months, after a bankruptcy has been filed. Some debtors take more than two months, said Sam Singer, a spokesperson for principal hotel owner San Ramon-based Eagle Canyon Capital, whose president is Bay Area business executive Sam Hirbod. “We did it in less than 2 weeks,” Singer said. The primary creditor in the bankruptcy is CLNC Mortgage Sub-REIT, a unit of real estate financing and investment firm Colony…

https://www.sdbj.com/news/2021/mar/10/local-hotel-market-recovering/ By Ray Huard Wednesday, March 10, 2021 Investors are starting to take a renewed interest in San Diego County hotels with industry experts predicting that 2021 will be a year of strong recovery. “There’s definitely been a change in how buyers look at hotels and I would say the one word that sums it up is optimistic,” said Alan Reay, president of Atlas Hospitality Group. “San Diego is already bouncing back very, very quickly,” Reay said. “If owners are looking to sell in San Diego, prices are definitely going to be higher in 2021 than they were in 2020.” The number of hotel sales in 2020 dropped from 22 in 2019 to 20 in 2020 and the average sales price per room dropped 12.1%, according to an Atlas Hospitality Group survey. Big Deals The largest hotel sold in San Diego County in 2020 was the 211-room Hotel Palomar for $62.8 million, according to the survey. The most expensive hotel sold in the county last year was the 192 room Residence Inn in Mission Valley that went for $67 million, according to the survey. Among the most recent sales, the 245-room Courtyard San Diego Downtown at 530 Broadway was sold for…

https://www.pacificsandiego.com/latest/story/2021-03-18/its-official-lafayette-hotel-sold-for-25-8m Prolific restaurant group known for Little Italy dining venues is the buyer of the historic El Cajon Boulevard property By LORI WEISBERG SAN DIEGO UNION-TRIBUNE MARCH 18, 2021 7:29 PM PT The historic Lafayette hotel, a North Park landmark that dates to the 1940s, has been sold to a local restaurant group for $25.8 million. The sale, which closed escrow Wednesday, will now clear the way for what could be a two-year restoration project that the new owner says will be the property’s “most significant overhaul” since its inception in 1946. Purchasing the 131-room hotel is San Diego-based CH Projects, which is making its first foray into the world of hotels. The restaurant group is well known for its continually expanding portfolio of San Diego drinking and dining venues, including Born & Raised and Ironside Fish & Oyster in Little Italy and Raised by Wolves in Westfield UTC. Its most visible hotel-related project, which has yet to open, is the rooftop venue it created on the 19th floor of the Intercontinental in downtown San Diego. “We closed yesterday, and I’m still pretty shocked,” said CH co-founder Arsalun Tafazoli, who declined to say how much his group plans to invest in the…

Local hotels being auctioned off are part of $470 million sales package https://www.mercurynews.com/2021/03/11/real-estate-bay-area-hotels-bankruptcy-auction-block-covid-travel/ By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: March 11, 2021 at 5:45 a.m. | UPDATED: March 11, 2021 at 4:25 p.m. SAN JOSE — Two hotels in the Bay Area, one in the South Bay and the other on the Peninsula, are part of a coast-to-coast package of hotels that are being offered for sale by a bankrupt owner. Eagle Hospitality Trust, a Singapore-based real estate firm, seeks to sell 15 hotels around the country, including the two in the Bay Area, through what is known as a stalking horse auction that is used to determine a minimum price for the assets being sold. The two Bay Area hotels included in the auction are the Four Points by Sheraton at 1471 N. Fourth St. in San Jose and the Holiday Inn & Suites at 330 N. Bayshore Blvd. in San Mateo, according to documents on file with the U.S. Bankruptcy Court. The overall proposed purchase price for the 15 hotels is $470 million, court records show. Eagle Hospitality Trust, which owns 18 hotels in the United States, including eight in California — the world-famous Queen Mary Hotel in Long Beach…

Fairmont San Jose owners seek favorable financing, improved management, new brand through bankruptcy https://www.mercurynews.com/2021/03/08/bankrupt-fairmont-hotel-spur-downtown-san-jose-rebound-covid-tourism/ By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: March 8, 2021 at 9:26 a.m. | UPDATED: March 9, 2021 at 8:30 a.m. SAN JOSE — Once it emerges from bankruptcy, downtown San Jose’s iconic Fairmont Hotel could help fuel a rebound in the city’s urban core as the region’s economy seeks to convalesce from the coronavirus. The 805-room Fairmont San Jose filed for bankruptcy on March 5 and closed its doors the same day, an abrupt shutdown that displaced guests, including the Vegas Golden Knights ice hockey team, which was playing the San Jose Sharks in an NHL game. “The Fairmont definitely can be successful in the future, once it has restructured its finances,” said Alan Reay, president of Irvine-based Atlas Hospitality Group, which tracks the lodging industry in California. The owners of the Fairmont San Jose hotel listed debts of at least $100 million and as much as $500 million as well as hundreds of creditors in the Chap. 11 bankruptcy filing to reorganize the hotel’s debts. “The fact that no one is talking about liquidation and that this is a reorganization says something about their confidence in the…

https://spectrumnews1.com/ca/san-fernando-valley-ventura/business/2021/02/22/project-homekey-makes-up-most-of-california-s-hotel-sales BY JOSEPH PIMENTEL ORANGE COUNTY PUBLISHED 8:00 AM ET FEB. 23, 2021 IRVINE, Calif. — Gov. Gavin Newsom’s Project Homekey accounted for $890 million of hotel sales in California last year, reviving what would have been a paltry year in terms of hotel transactions in the state. While sales of hotels across the nation sagged due to the coronavirus pandemic, California was the only state to record an increase in the number of hotel transactions year-over-year, said Alan X. Reay, president of Atlas Hospitality Group. “Project Homekey helped hotel owners that were looking to sell last year but had no other takers at the prices they were expecting, which is where Project Homekey stepped in,” Reay told Spectrum News. “Without Project Homekey, California would have seen 26% less individual hotel sales and 61% less in total dollar volume.”       What You Need To Know Hotels sold using the state-sponsored Project Homekey accounted for $890 million in hotel sales last year California was the only state in the nation to record an increase in the number of hotel transactions year-over-year Gov. Gavin Newsom launched Project Homekey as a way to house the homeless and those at-risk of homelessness by converting hotels…