Atlas in the news

HotelNewsNow 09/01/16 California Hotel Sales Drop Severely After Record Year By Sean McCracken http://www.hotelnewsnow.com/Articles/67458/California-hotel-sales-drop-severely-after-record-year   REPORT FROM THE U.S.—Hoteliers across the state of California have seen a steep drop-off in transactions through the first half of 2016 after a record-shattering 2015, according to research from Atlas Hospitality Group. Alan Reay, president of Atlas, said a combination of three factors led to a 56% year-over-year decline in total-dollar-volume transactions: Tough numbers to compare to in 2015, a first quarter stock market slowdown and a shift in pricing leading to a gap between buyers’ and sellers’ expectations. “The first quarter was very, very ugly in terms of transactions, and people didn’t know what direction the market was heading,” Reay said. “The second quarter picked up again, but if anything sums up the first six months, it’s that buyers were very cautious.” In addition to the drop in dollar volume, California saw a 17% drop in individual transactions. The drop looked even bleaker in just the first quarter, when dollar volume fell 60% and transactions fell 42% Reay said inactions by real estate investment trusts and a corresponding dip in portfolio sales played a big part in the numbers falling. “REITs’ stocks plummeted…

HotelNewsNow 08/18/16 5 Things to Know: California Hotel Pricing Climbing Up, but Pace Down By the HNN editorial staff http://www.hotelnewsnow.com/Articles/64369/5-things-to-know-18-August-2016 California hotel pricing climbing up, but pace down: Atlas Hospitality Group released its “2016 Mid-Year California Hotel Sales Survey,” which shows that sales were off in the first quarter of 2016. Total dollar volume fell 56% for the first half of the year compared to the same period in 2015, and individual transactions were down 17%. Hotel sales values in California climbed in the first half, though, and the median price per room increased 11.3%. This was off from the record-breaking growth pace of 2015, which had a median price per room increase of 25%. Atlas reports that buyers’ attitudes can be summarized as “cautious,” so far this year because there are concerns that hotel values have peaked.

Bisnow 08/16/16 Hotel Sales Slowing, Mid-Year Hotel Survey Reveals By Patricia Kirk https://www.bisnow.com/san-diego/news/hotel/hotel-sales-slowing-mid-year-hotel-survey-reveals-64086   Irvine, CA-based Atlas Hospitality Group’s 2016 Mid-Year California Hotel Sales Survey recorded a 38% decrease in hotel sales in San Diego County during the first half of the year, compared to sales during the same period in 2015. Total dollar sales volume dropped 65% to $242.1M, down from $696.6M from the previous year. Overall, California hotel transactions dropped 17% during the first half of 2016, from 174 sales in 2015 to 144, while sales dollar volume dropped 56.2%, from $4.4B to $1.9B. The largest hotel sold in San Diego County during the first half of 2016 was the 350‐room Marriott San Diego Mission Valley. The most expensive sale was $80.5M for the 284‐room San Diego Marriott Del Mar, or $281,700/room. The average price paid per room during the first half of 2016 declined 16%, but the median price per room rose 23%. In July, however, the 372-key San Diego Marriott La Jolla (pictured) in University Town Center sold to NY-based Carey Watermark Investors 2, a real estate investment trust, for $131M, or $353,200/room. California hotel sales values continued to climb during the first half of 2016,…

San Diego Business Journal 08/16/16 County’s Hotel Property Deal Volume Declined in First Half By Lou Hirsh http://sdbj.com/news/2016/aug/16/countys-hotel-property-deal-volume-declined-first-/   San Diego County’s hotel property transaction volume declined 38 percent from a year ago in the first half of 2016, with the dollar volume down 65 percent, according to a recent mid-year report by brokerage and consulting firm Atlas Hospitality Group. San Diego County saw a total of 10 hotels change hands in the January-to-June period, with total deal volume topping $242.1 million. Atlas officials said the San Diego region’s average price per room on completed deals dropped 16 percent, to $171,016; but the median price per room in those deals rose 23 percent from the first half of 2015, to $125,321. The local region’s most expensive hotel transaction of the first half was the $80.5 million deal for the 284-room San Diego Marriott Del Mar in University Towne Center, acquired by New York-based Carey Watermark Investors 2 Inc. The largest local hotel sold during the first half was the 350-room Marriott San Diego Mission Valley, purchased by an affiliate of Connecticut-based Wheelock Street Capital LLC for $76 million. Atlas President Alan Reay said California as a whole saw the number…

Orange County Register 08/16/16 ‘Taking a Breather’: Hotel Market Cools By Hannah Madans http://www.ocregister.com/articles/year-725957-percent-sales.html   Hotel sales volume was down 56 percent in California the first half of this year as buyers and sellers retreated from the market, according to Atlas Hospitality, an Irvine-based real estate firm. Orange County was a bright spot as hotel sales were up 27 percent. “Sales are way down year to date, but that’s not a surprise to us,” Atlas President Alan Reay said. Last year “was a record-breaking year for sales transactions, and we did expect to see a decline, but we didn’t predict this large of a decline.” Plummeting hotel stock contributed largely to the plunge, Reay said, as publicly traded hotel groups were no longer buying and became sellers. “We had a lot of inventory in the first quarter and not a lot of buyers. A lot of uncertainty in the marketplace, people thinking we might have peaked. Buyers were very cautious,” he said. Reay added that the second quarter of the year was better than the first. “The market is taking a breather, and people are looking at 2016 as a year where we might see where the direction hotels are…

The San Diego Union-Tribune 08/15/16 Hotel Sales Slow in California By Lori Weisberg http://www.sandiegouniontribune.com/news/2016/aug/15/hotel-sales-slow-california-san-diego/   Hotel real estate values in California continued to climb during the first half of this year, but the pace slowed considerably as fewer large, high-profile properties traded hands, a newly released report shows. Based on the metric of median price per room, hotel sales values rose 11.3 percent statewide, although that is down considerably from the 25 percent increase during the same period last year, according to a mid-year survey from Orange County-based Atlas Hospitality Group. In Southern California, the volume of transactions varied widely, with San Diego County seeing a 38 percent drop in the number of sales while Los Angeles and Orange counties recorded a healthy uptick. But in all three regions, the dollar amount of those transactions fell considerably — from 32 percent in L.A. to 83 percent in Orange County. Statewide, sales during the first six months totaled more than $1.9 billion, off sharply from the $4.4 billion total during the same period last year. That’s owing in part to a larger number of smaller hotels selling and the absence of large real estate investment trusts from the market, said Atlas…

HotelNewsNow 08/15/16 California Building Boom Leads to Worries Over Supply By Sean McCracken http://www.hotelnewsnow.com/Articles/63929/California-building-boom-leads-to-worries-over-supply   REPORT FROM THE U.S.—An extended period of strong hotel development has led to some supply concerns across California, but some markets are expected to remain strong as they enjoy favorable fundamentals and conditions that will keep supply growth to a minimum. Atlas Hospitality Group’s 2016 midyear California Hotel Development Survey notes that the state is in the “midst of a hotel building boom” that is helping to make up for the “lack of new construction from 2009 to 2013.” Supply growth in the state during that period was very moderate, according to Atlas President Alan Reay, and Californian hoteliers enjoyed strong revenue per available room growth. He said the dynamics get a bit more difficult with RevPAR growth shrinking and supply growth ramping up. Flattening RevPAR growth “is coming at a time when a lot of product is coming online,” he said. “I won’t say we’re at the tipping point because some say we’re getting to where we should be because we didn’t do new construction for a few years.” He said some markets have more reason to worry than others. “There are pockets with…

Orange County Business Journal 08/11/16 Hotel Menage to Rebrand as Sheraton By Paul Hughes http://www.ocbj.com/news/2016/aug/11/hotel-menage-rebrand-sheraton/   The Hotel Menage in Anaheim plans to rebrand as a Four Points by Sheraton, industry sources said. The plan includes renovations of the hotel’s 255 rooms expected to begin in the fall and continue into early 2017. La Casa Anaheim Resort LLC, an affiliate of Casa Resorts Inc. in Laguna Beach, sold the Menage to Taiwan investor Kitty Lo last August for $34.2 million. Partners Richard Ham, Takao Shinomiya and Christopher Keller bought the hotel in 2006 for $22.5 million. The hotel had been a Holiday Inn prior to the purchase. Casa renovated rooms and created an environment that catered to families and visitors to Disneyland Resort, a mile from Menage. Ham said at the time Casa sold it, “We marketed it well and have some very loyal customers.” Calls to the hotel’s new owner and her company’s chief executive weren’t returned. “Due to all the new hotels coming into the marketplace, they might feel they need a national reservation system,” said Alan Reay, chief executive of Irvine hotel broker Atlas Hospitality Group. Menage bookings are already available on the Starwood system under its…

Los Angeles Times 08/10/16 Queen Mary Is Getting a Bow to Stern Makeover — and a Club in the Boiler Room By Andrew Khouri http://www.latimes.com/business/la-fi-queen-mary-renovations-20160808-snap-story.html   When Joshua Schwandt stayed at the Queen Mary several years ago, he loved the Art Deco woodwork and the way the Observation Bar oozed an old-timey feel. He wasn’t as ecstatic about his aging hotel room. The shower only drizzled water, and the bed felt like “one of those dorm room beds that have been slept on for 50 years,” he recalled… …Alan X. Reay, president of Atlas Hospitality Group, said existing hotels are increasingly renovating to remain competitive with new lodgings, which are under construction in Southern California at a record rate. “Hotels that do not renovate or update are going to have a really hard time in the next three to five years,” he said. In Urban Commons’ case, “they are [creating] the cruise ship experience without having to sail around down to Mexico,” Reay said. “That will definitely allow them to push rates — no question.”