Atlas in the news

The San Diego Union-Tribune 02/20/16 San Diego in Midst of Hotel Building Boom By Lori Weisberg http://www.sandiegouniontribune.com/news/2016/feb/20/san-diego-in-midst-of-hotel-building-boom/   It was only six years ago that financial turmoil was roiling the county’s now thriving hotel industry. The iconic Hotel del Coronado was on the verge of defaulting on more than a half billion dollars in debt. San Diego’s then hippest hotel, the W, was in foreclosure. And a luxury downtown property that two years earlier boasted $600-a-night rooms was in bankruptcy. What followed was a years-long drought of new hotel rooms that is a drought no longer. Less than two months into the new year, a powerful resurgence in hotel values and revenues is fueling an El Niño-like deluge of development at a level not seen in at least eight years. From Oceanside to Chula Vista, more than 2,000 hotel rooms are under construction, and at least 7,400 more are in the pipeline, awaiting development approvals and construction permits. Two midrise properties within Liberty Station are under construction, as is a 300-room luxury hotel downtown, and a highrise on Lane Field is nearing completion. Further north, Oceanside has multiple mid-sized projects in various planning stages, while Legoland recently submitted a proposal…

Orange County Register 02/19/16 Developers Rush to Build Orange County Hotels By Jonathan Lanser http://www.ocregister.com/articles/hotels-704966-county-rooms.html   Orange County is in the middle of a hotel construction boom. Three hotels opened in Orange County last year, adding 606 rooms for visitors to choose from, after four hotels with 699 rooms opened in 2014, Atlas Hospitality reports. The largest hotel to open in 2015 was the 221-room Courtyard Anaheim Theme Park Entrance. This year will be even busier. Orange County has 12 hotels with 2,461 rooms scheduled to open as soon as this year, Atlas reported. The highlight of this building boom is the 603-room Great Wolf Lodge in Garden Grove, which opened Friday. In addition, Orange County has another 25 hotels with 4,234 rooms in various stages of planning. The building boom follows a sharp recovery for tourism. Room rates soared 31 percent in the last year years, according to CBRE Hotels. “We’re OK for the next couple of years,” says Alan Reay, Atlas president. “But lenders and buyers are now showing a little but of caution.” Hotel business fundamentals are strong, and it should stay that way throughout 2016, Reay says. Record profits lured developers back into building hotels, as…

Los Angeles Business Journal 01/25/16 SPECIAL REPORT: New Scene Checks In Once known for rock ‘n’ roll excess, Sunset Strip now making room for hotel developments aimed at reviving area as must-visit destination. By Daina Beth Solomon http://labusinessjournal.com/news/2016/jan/25/special-report-new-scene-checks/   Over the decades, the Sunset Strip has witnessed Jim Morrison dangle out of a hotel window, Tower Records become a global landmark and River Phoenix die of a drug overdose. Now a new era is beginning for the legendary area as real estate developers look to bank on the boulevard’s storied past of celebrity and counterculture. After three decades without major construction, several multistory projects have broken ground and are pushing up the Strip’s skyline. Sleek new buildings with rooftop pools and public plazas will add more than 758 hotel rooms and 254 residences on Sunset Boulevard. Altogether, they represent an estimated value of $1 billion. At least two other complexes are in development as well, including a Frank Gehry design. Backed by major companies, these projects will inevitably transform both the economy and culture of the iconic mile-and-a half section of Sunset. “Sunset has gone through so many changes over the years, from the hippies and punk rockers to the…

Bisnow 01/19/16 Why a Record $1.4B in Sales Volume Is Just the Beginning for OC’s Booming Hotel Market By Patricia Kirk https://www.bisnow.com/orange-county/news/hotel/orange-county-seeing-boom-in-hotel-construction-and-record-setting-sales-of-14b-54699   Orange County’s hospitality industry enjoyed a banner year in 2015, with a boom in hotel development and record-setting sales volume and dollar value hitting $1.4B. That’s according to Atlas Hospitality president Alan Reay, who is among the speakers at our Orange County State of the Market event on Feb. 18 at 2600 Michelson in Irvine. Alan (here at a Kansas City Chiefs game) says among those deals was the 250-room Montage Laguna Beach (below), which changed hands twice in the same year. The first sale to Chicago-based Strategic Hotels & Resorts Inc in January 2015 was for $360M, or $1.4M/room, making it the biggest hotel sale in California’s history. Blackstone Group acquired it, along with the Ritz-Carlton Laguna Niguel, when it purchased strategic Hotels & Resorts in September for $3.93B. Alan tells us with the high price of existing projects, new development makes sense, as construction financing is readily available for well-located hotels, noting high occupancy is putting upward pressure on room rates. He expects development to continue for another 24 to 36 months before slowing down….

The Orange County Register 01/15/16 Hotel Deals: Pacific Hospitality Group Buys in Hawaii; Anaheim Firm Buys in San Diego By Hannah Madans http://www.ocregister.com/articles/hotel-700047-hospitality-new.html   The hotel boom for Orange County hospitality is already making waves in the New Year. Irvine-based Pacific Hospitality Group has bought the oceanfront Ko’a Kea Hotel & Resort on Kauai. The property was named the most prestigious resort in Hawaii in Conde Nast Traveler’s “Top 25 Resorts in Hawaii: Readers’ Choice Awards 2015.” Terms of the deal, which was announced Thursday, were not disclosed. “It sits really nicely within our expanding portfolio of assets,” said Kory Kramer, PHG chief investment officer. “It’s our first purchase outside of California for the Meritage Collection, which provides diversity and gets us into the Hawaiian market, which we foresee growth in – and it’s a hard market to enter.” Kramer said PHG plans to increase occupancy rates at the Ko’a Kea, which stands just above 60 percent. The hospitality group plans to increase marketing efforts and leverage existing clients. The 121-room hotel includes nine suites, a fitness center, spa, pool and 11,170 square feet of meeting space. The hotel’s restaurant, Red Salt, serves seafood and locally sourced produce. The hotel…

Bisnow 01/11/16 Anaheim’s Fortune Hospitality Snaps Up San Diego Best Western By Patricia Kirk https://www.bisnow.com/orange-county/news/hotel/anaheims-fortune-hospitality-snaps-up-newly-renovated-best-western-in-n-san-diego-co-for-124m-54369 Anaheim-based Fortune Hospitality has acquired the contemporary, 78-room Best Western Plus hotel in North San Diego County for $12.4M, or about $159k/room. The seller was Beverly Hills-based Sikand La Mesa Hotel LLC. Built in 1986 and newly renovated, the former Holiday Inn Express is a three-story hotel on a little less than an acre site at 9550 Murray Dr in La Mesa, just minutes from SDSU, Aztec Aquaplex, Qualcomm Stadium and the SD Zoo. The hotel features a pool, spa, fitness facility and business center, according to the Orange County Business Journal. Irvine-based Atlas Hospitality brokers SVP Sachin Shah and EVP Oliver Shah repped both parties in this deal.

Sacramento Business Journal 01/05/16 Hotel Sells for Hefty Price in El Dorado Hills By Mark Anderson http://www.bizjournals.com/sacramento/blog/morning-roundup/2016/01/hotel-sells-for-hefty-price-in-el-dorado-hills.html   In another sign that Sacramento’s hospitality market is becoming more attractive to investors, a hotel in El Dorado Hills recently sold for a robust price. A San Francisco investor purchased the Holiday Inn Express in the El Dorado Hills Town Center on Dec. 15 for $14.4 million, or $155,203 per room, and plans a major renovation. The selling price for the 93-room hotel is on the higher end for a suburban limited-service hotel. For comparison, the 132-room Holiday Inn Express Sacramento Convention Center sold for $9.5 million, or roughly $71,000 per room, last August. The price reflects the hotel’s strong performance since it opened in late 2005, said Justin Myers, a vice president for Irvine-based hotel brokerage firm Atlas Hospitality Group. The hotel, which was originally built for roughly $12 million, had been run by McDermid Management Co. of Colorado. “El Dorado Hills is an affluent market, and because of its proximity to Intel and Folsom, it is a strong hotel market,” said Myers, who represented the seller. The buyer, Rajputana Hospitality, will spend $1 million on renovations and will also keep…

San Diego Business Journal 01/03/16 Best Western Hotel in La Mesa Sells for $12.4 Million By Lou Hirsh http://sdbj.com/news/2016/jan/03/best-western-hotel-la-mesa-sells-124-million/   Anaheim-based Fortune Hospitality LLC has acquired the 78-room Best Western Plus hotel in La Mesa for $12.4 million, according to CoStar Group and brokerage company Atlas Hospitality Group. The seller of the three-story property, at 9550 Murray Drive, was Sikand La Mesa Hotel LLC, represented by Atlas’ Sachin Shah and Oliver Shah. Sachin Shah also procured the buyer. The hotel was built on 0.81 acres in 1986.

Orange County Register 12/30/15 Historic Downtown Los Angeles Building to Become Hip Hotel By the Associated Press http://www.ocregister.com/articles/downtown-698003-hotel-hoxton.html   LOS ANGELES – A British firm that spent $30 million on a crumbling but historic building in downtown Los Angeles plans to transform it into a hip hotel, according to a real estate brokerage. The purchase by Hoxton is the latest bet that the neighborhood’s renewal is luring tourists and not just business travelers, the Los Angeles Times reported Wednesday. “Downtown is thriving and international companies are all taking note,” said Sara Lo, a senior manager specializing in the hospitality business at consulting and accounting firm Ernst & Young. The 1920s-era building at 11th Street and Broadway has been empty since the mid- to late 1990s. JLL, the brokerage involved in the purchase, said Hoxton is planning a hotel but declined to give additional details. A representative from Hoxton owner Ennismore of London declined to comment on the deal. Downtown has transformed in recent years, with a growing number of dining and nightlife options. The hotel market is strong — with a 77 percent occupancy rate that beats the 75 percent average for the nation’s top 25 markets, Lo said. A…

Los Angeles Times 12/29/15 British Firm Plans to Remake Historic Downtown L.A. Building into a Hip Hotel By Andrew Khouri http://www.latimes.com/business/la-fi-downtown-hotel-20151230-story.html   A British hotel operator has purchased a historic building in downtown Los Angeles for $30 million and plans to transform the decaying structure into a hip, stylish hotel, according to JLL, the brokerage involved in the deal. The investment is the latest bet that the neighborhood’s renaissance has created a place where tourists, not just business travelers eyeing a comfortable environment, want to lay down their heads. And with the money coming from overseas, it’s a sign investors worldwide think so too. “Downtown is thriving and international companies are all taking note,” said Sara Lo, a senior manager specializing in the hospitality business at consulting and accounting firm Ernst & Young. JLL said that Hoxton is now “underway on plans for the hotel,” but did not provide further details. The operator has hotels in London and Amsterdam and plans to open another in New York and one in Paris next year, according to its website. A representative from Hoxton owner Ennismore of London declined to comment. Hoxton describes its brand as the “anti-hotel,” where travelers find not only…

Orange County Register 12/28/15 The Hotel Boom of 2015: High Occupancy Rates, Rising Room Rates, Record Hotel Sales – The Year Had It All By Hannah Madans http://www.ocregister.com/articles/hotel-697446-hotels-new.html   The hotel industry is booming, as high occupancy and room rates make properties more valuable to own, driving hotel prices higher. The boom is manifesting in new construction, major renovations of existing properties and a record rate of hotel sales. A handful of hotels are being built in Orange County, including the Paséa in Huntington Beach. And a number of existing ones, such as the Island Hotel in Newport Beach, have undergone major renovations this year. Many other hotels changed hands as developers looked to increase their stake in Orange County’s lucrative hospitality market. In 2015, around $1.4 billion was spent on hotel purchases in Orange County, according to Atlas Hospitality Group, an Irvine-based real estate company that specializes in hotels. The firm also said that about eight hotels are under construction here, and four have opened in the past year. The industry is widely expected to continue growing in 2016, but at a slower pace. PASÉA HOTEL & SPA Across the street from the iconic Huntington Beach Pier sits the…