Atlas in the news

The Omni San Diego is close to completing its largest renovation ever that will include two new venues for dining and drinking By LORI WEISBERG | The San Diego Union-Tribune PUBLISHED: June 28, 2024 at 5:30 a.m. | UPDATED: June 28, 2024 at 5:31 a.m. The 32-story Omni hotel next door to Petco Park is nearing the end of a major renovation that will bring two new drinking and dining venues to the downtown San Diego high-rise. The $30 million hotel-wide makeover coincides with the 20th anniversary of the 511-room hotel, which was developed at the same time that the Padres ballpark made its debut in the once gritty warehouse district in East Village. The extensive refresh of the property — the largest since it first opened — encompasses the lobby, guestrooms, meeting spaces, and the sixth-floor pool area and terrace that overlooks the water. While most of the renovation has been completed, work on the lobby is still ongoing, although the hotel general manager promises it will be open for next month’s Comic-Con, and the street-level restaurant known as Ace Porter isn’t expected to open until the middle of July. In reimagining the hotel’s various spaces and guestrooms, the design team took into consideration…

The Marriott property is one of only two hotel projects in the county to break ground this year By LORI WEISBERG | The San Diego Union-Tribune PUBLISHED: June 27, 2024 at 6:00 a.m. | UPDATED: June 27, 2024 at 10:47 a.m. A new seven-story hotel that will include a number of extended-stay guestrooms will soon be rising in Mission Valley adjacent to a longstanding Marriott where tennis courts once operated. The 148-room property on Rio San Diego Drive will be Marriott’s first Element by Westin-branded hotel in San Diego County and one of the first newly constructed hotels to open in Mission Valley since 2016 when the 135-room Springhill Suites made its debut. While the new development is not considered part of the increasingly common dual-branded hotel concept, the Element will be able to take advantage of some of its next-door neighbor’s amenities, like its restaurant and resort-style pool. Developing the $72 million project is Driftwood Capital, a Florida-based commercial real estate investment firm that purchased the San Diego Marriott Mission Valley in 2019 and recently opened an Element hotel in Melbourne, Fla. The site where the Mission Valley Element is being built at one time housed tennis courts and a parking area where Driftwood…

Bank of America provides fresh debt on 1,030-key hotel JUN 25, 2024, 2:30 PM – By Isabella Farr Tarsadia Investments, run by Orange County hotelier Tushar Patel, has refinanced its 1,030-key Anaheim Marriott hotel.  The firm scored a $125 million loan from Bank of America on the hotel, located at 700 West Convention Way, adjacent to the Anaheim Convention Center, according to property records filed with Orange County.  The debt was packaged into a commercial mortgage-backed securities deal, according to Tarsadia executive Alkesh Patel.  “We’re very happy with the outcome,” Patel said. Terms of the deal were not disclosed. The loan replaces $110 million in debt from JPMorgan Chase Bank, provided in 2014 and packaged into a commercial mortgage-backed securities deal. TRD previously reported Tarsadia was 90 days delinquent on the loan, based on incorrect servicer information from Trepp, but has since reviewed documents showing the refinancing.  Patel bought the property in 1999 for about $80 million, marking his biggest deal at that point, the Los Angeles Times reported at the time.  In 2023, the hotel was making five times what was needed to service the debt, according to Trepp. The hotel averaged 78 percent occupancy, with an average daily rate of $216,…

By Roger Vincent Staff Writer  June 21, 2024 1:42 PM PT The former Ace Hotel in downtown Los Angeles, which helped lead an economic revival on a historic stretch of Broadway a decade ago, has reopened as a minimal-service operation akin to Airbnb, following a strategy that has become increasingly common for struggling hotels in recent years. Now called Stile Downtown Los Angeles by Kasa, the 1920s-vintage hotel tower has resumed limited operations after shutting down nearly six months ago. Downtown hotels were particularly hard-hit by the pandemic, and some have changed owners or operators. Ace Hotel Group had operated the 182-room hotel near Broadway and Olympic Boulevard since it opened in 2014, even as its ownership changed twice over the years. The chic brand made the Ace a destination for travelers as well as local residents who patronized its buzzy rooftop bar and restaurants. South Korea-based AJU Continuum, which bought the hotel in 2019, announced last week that it had brought in Kasa Living Inc. to operate the property. Kasa, which is based in San Francisco and has a national presence, “offers the consistency of a major hotel chain with the convenience and character of a modern short-term rental,” AJU Continuum…

Marriott International will begin day-to-day management on July 1 By JONATHAN LANSNER | jlansner@scng.com | Orange County Register PUBLISHED: May 24, 2024 at 9:15 a.m. | UPDATED: May 24, 2024 at 1:09 p.m. The Irvine Co. will turn over day-to-day management of its Resort at Pelican Hill to Marriott International, with the luxury hotel eventually joining the St. Regis brand. The Newport Beach oceanview resort — with 204 rooms, 128 villas and two golf courses—  is the Orange County real estate giant’s only remaining hotel. It has been run independently of any chain since its opening in 2008. Irvine Co. announced that the operational switch, which does not change Irvine Co. ownership of the resort, begins July 1. The move was first reported by The Real Deal. Irvine Co. added that Marriott “is committed to retaining the majority of our resort associates.” The company also said the property will join Marriott’s high-end St. Regis hotel network “at a later date.” The move was made after a year’s “strategic review of the property and its operations, meeting with hospitality experts from around the world to explore how to further enhance the five-star experience that makes the resort a sought-after destination for our guests and our local community,” Irvine Co. said. The…

HANNAH WELK | MARCH 22, 2024 The Residence Inn in Manhattan Beach has sold for $68 million. Jones Lang LaSalle Inc. represented the seller, Washington Holdings, in the offloading of the 176-room property. Land and Houses USA Inc. purchased the asset. Twenty Four Seven Hotels will manage the property. “The addition of Residence Inn by Marriott Manhattan Beach to our portfolio continues the expansion of our management footprint throughout California, offering a model that’s flexible and fast on its feet with unparalled area operational expertise,” the company wrote in a LinkedIn post. It’s been a difficult time for hotel sales. In California, sales volume fell by more than 56% year over year, according to data from Atlas Hospitality Group. The median price per room was down roughly 1% year over year statewide. In Los Angeles County, hotel transactions declined 55% year over year and the total dollar volume spent decreased nearly 36% year over year, Atlas reported.

By Sarah Klearman and Alex Barreira – San Francisco Business Times | Mar 14, 2024 Updated Mar 14, 2024 5:50pm PDT This week Westbrook Partners was served a notice of default for a $72.5 million loan tied to 222 Sansome St., the home of the Four Seasons San Francisco at the Embarcadero. Westbrook, which acquired the 155-key hotel property in 2019 for $126.6 million, or about $816,000 per room, is behind more than $3.15 million in payments on the loan, per a notice of default recorded for the property March 3. The Florida-based developer has not made its monthly payment on its loan since December, per the notice, which states that Westbrook has 90 days to become current on its loan. If the investor fails to do so, its lenders could move to foreclose on the property, which occupies the top 11 stories of the 48-story tower at 345 California St. but is considered a separate property and employs the 222 Sansome address. Notices of default typically constitute the first step in the foreclosure process, though in some cases loan sponsors like Westbrook purposefully default on their loans as a way to commence negotiations with their lenders. Neither Westbrook nor…

Sumitomo Realty & Development completes a $14 million renovation of the prestigious Park Hyatt Los Angeles, sparking market speculations and impacting the hospitality industry. Sakchi Khandelwal |  28 Feb 2024 14:29 EST Sumitomo Realty & Development has recently completed a lavish $14 million renovation of the Park Hyatt Los Angeles, a landmark hotel situated in the bustling heart of Century City. Opened in 1988, this prestigious hotel boasts a four-diamond rating from Mobil AAA, reflecting its high standards of luxury and service. Despite its newly refurbished state, there is speculation about its future ownership, stirring interest in the hospitality sector. Comprehensive Upgrades and Design Innovation The renovation project has transformed the Park Hyatt Los Angeles, encompassing extensive upgrades to its 366 guest rooms and a complete redesign of the lobby. The architectural firm Culpepper, McAuliffe, Meaders Inc. based in Atlanta led the redesign, infusing modern aesthetics while enhancing the hotel’s luxurious ambiance. This significant investment underscores Sumitomo’s commitment to maintaining the hotel’s prestigious status and appeal to both business and leisure travelers. Market Speculations and Strategic Considerations Despite the fresh upgrades, Alan Reay, president of Atlas Hospitality Group, suggests that the hotel may be put up for sale. This speculation…

Similar to what’s happening in the housing market, high interest rates are depressing the volume of hotel sales, which in San Diego County recorded their second biggest decline in 15 years. BY LORI WEISBERG | FEB. 29, 2024 5:30 AM PT San Diego made history last year when the upscale Inn at Rancho Santa Fe sold for a stunning $1.2 million a room — even as the volume of hotel transactions experienced one of the biggest declines the county has seen in 15 years. The pricey sale of the 85-room inn belies a distressing trend seen not just locally but across the hotel real estate market statewide: a sharp downturn in sales fueled largely by high interest rates and a skittishness among lenders to finance costly transactions. Last year marked the second steepest decline since 2009 for both the number of hotel transactions and overall dollar volume in San Diego County, according to a new statewide report released by the Orange County-based brokerage, Atlas Hospitality Group, which tracks sales throughout California. The rising cost of financing is concerning enough that it has some experts — including Atlas Hospitality — warning about the looming threat of hotel foreclosures as large debt repayments come due. While…

CHERYL SARFATY | THE NORTH BAY BUSINESS JOURNAL | February 19, 2024, 11:58AM Where in California do you think the most expensive hotel sale took place last year? If you said Sonoma County, you would be correct. In September, the Farmhouse Inn, a 25-room luxury property in Forestville, sold for $32 million, commanding $1,280,000 per room, according to Atlas Hospitality Group, a Newport Beach-based real estate brokerage firm that specializes in hotel properties across California. Foley Entertainment Group in September purchased a majority stake in the Farmhouse Inn from siblings Joe and Catherine Bartolomei. The duo retained 25% ownership of the six-acre property they purchased in 2001, The Press Democrat reported at the time. Atlas recently released its 2023 year-end hotel surveys for the state, one summarizing hotel sales, the other reviewing hotel development plans. The group also releases midyear surveys. Most of the hotel development plans will never see the light of day, said Alan X. Reay, president and founder of Atlas. “Lenders are currently burdened with loans that are maturing and borrowers are unable to pay off, which has them currently shut down on new construction loans,” he said. Markets where new hotels have a remote chance of coming to…

Hotel Sales Sustained a Dismal 2023 BY BRYNN SHAFFER | FEBRUARY 19, 2024 California hotel sales plummeted last year, according to Atlas Hospitality Group, which recently released its 2023 end-of-year hotel sales survey. “The big jump-out is the dramatic or steep decline in number of transactions and dollar volume,” said Alan Reay, president of Atlas Hospitality Group, who’s been tracking California hotel sales for more than 20 years. “This is the steepest decline we’ve seen in the last 20-plus years, except for one year, and that was 2009.” Last year, individual hotel sales were down 45% over 2022 statewide, illustrating the second largest percentage decline in the last 15 years. Sales volume declined by 56%, the second steepest decline in sales volume in the last 15 years as well. For Reay, the biggest culprit behind these staggering numbers was the increase in interest rates. “What we have now is a disconnect between what buyers are willing to pay and what sellers want to sell for,” he said. “And that’s because sellers are used to what prices were in 2022 when interest rates were 50% below what they are today.” And within Los Angeles specifically, Measure ULA – the one-time real estate transfer…

BY STEFANI C. O’CONNOR | FEBRUARY 13, 2024 Politics, economics, taxes, lending environment shape lodging landscape in the City of Angels. LOS ANGELES — As a city bullish on enhancing itself as a tourist mecca — ostensibly to ensure its lodging base flourishes—Los Angeles as a destination for hotel investors presents more as a mix of select opportunities and potential red flags. On one hand, market confidence-builders include a phased [ongoing] $30 billion investment to modernize Los Angeles International Airport (LAX); the opening this year of the L.A. Clippers new home, the Intuit Dome; the debut next year of the [George] Lucas Museum of Narrative Art; and subsequently, the FIFA World Cup and NBA All-Star Game (2026); Super Bowl LXI (2027); and the Summer Olympic and Paralympic Games (2028). In contrast, area politics and economics have been among key concerns for both existing and potential hotel investors of late, as much of it toggles to alleviating the plight of the homeless and broadening the scope of affordable housing in L.A. “Los Angeles, other than downtown, has been a historically under-supplied market; barriers to new supply are much higher today,” said Daniel Peek, president and chief operating officer at Hodges Ward Elliott. He…