Atlas in the news
California hotel sales reach record price per room — but not in San Diego
The Moxy hotel was the priciest sale in San Diego County during the first six months of 2022 (Courtesy of CoStar) The priciest hotel sale in San Diego County during the first six months of the year was the 126-room Moxy, a hip boutique hotel by Marriott. BY LORI WEISBERG AUG. 18, 2022 4:24 PM PT Even as the pace of hotel sales slowed across the state the first half of the year, California still hit a new record high for the price paid per room. San Diego, though, was an exception. It saw a nearly 12 percent decline. Atlas Hospitality Group, the Orange County brokerage that tracks hotel transactions statewide, cautioned that six months isn’t necessarily a complete picture of what’s ahead for California’s hotel real estate market. Atlas President Alan Reay is predicting that transactions will decline significantly during the remainder of the year as rising interest rates and uncertainty about the economy dampen owners’ interest in parting with their properties. In San Diego County, 25 hotels traded hands in the first half of this year, compared with 28 a year earlier, a decline of nearly 11 percent, says Atlas in its newly released mid-year sales report. But when measured…
Though Slower-Paced, California Hotel Sales Set New Record for Median Price Per Room
State Program, Investors Continue To Seek Hotels To Convert to Housing By Bryan Wroten | Hotel News NowAugust 16, 2022 | 1:30 P.M. While hotel sales in California cooled from their highs last year, transactions during the first half of 2022 set a new median-price-per-room record and approached other records as well. Atlas Hospitality Group’s California Hotel Sales Survey 2022 Mid-Year reports that the state had 263 individual sales during the first half of the year, down 9.9% from the first part of 2021. Total dollar volume reached $3.49 billion, a 33.59% year-over-year decrease. However, the state achieved a new record in median price per key at $143,443, a 12.7% year-over-year increase. Los Angeles County led with the highest number of hotel deals with 36. The deal with the highest price per room was Orange County’s 295-room Fashion Island Hotel Newport Beach, which will become a Pendry Hotel, in a $145 million leasehold sale that breaks down to about $491,525 per room. “The sales have cooled off a little bit from the record pace that was set in the first half [of last year], but it still came in as the second-highest number of individual sales and the third-highest total dollar…
Downtown San Diego’s Hotel Palomar is getting a $25M makeover — and a new name
The hotel that began life 14 years ago as a tony downtown property and later was reinvented as the Hotel Palomar will now be reimagined yet again — as the Kimpton Alma, with a new design, new branding and a change in dining venues. The renovation is expected to be complete by this fall. BY LORI WEISBERG AUG. 12, 2022 6:13 PM PT More than a decade after transitioning to a new name and brand, the Hotel Palomar in downtown San Diego is preparing for yet another identity change. Meet the new Kimpton Alma. Managed by Kimpton Hotels and Restaurants, the 211-room hotel is in the midst of a major redesign that is expected to cost $25 million, said Nick Gregory, senior vice president of hotel operations for Kimpton. That investment, he said, will go toward a “comprehensive transformation” of the Fifth Avenue property, including a refresh of all guestrooms and suites, new restaurants and kitchens, a more inviting pool area, and updated meeting spaces. The lobby also is being reimagined to make it more airy and light-filled but to also give it an indoor-outdoor feel, with large sliding doors that open out to the sidewalk. “If you think about it, it’s…
Vacation inflation: California sees big jump in hotel room rates
Occupancy runs 75%, up 6 percentage points over 12 months By JONATHAN LANSNER | jlansner@scng.com | Orange County RegisterPUBLISHED: August 13, 2022 at 7:24 a.m. | UPDATED: September 1, 2022 at 10:35 a.m. ”Survey says” looks at various rankings and scorecards judging geographic locations while noting these grades are best seen as a mix of artful interpretation and data. Buzz: Hotel room rates are heating up this summer in many places across California. Source: My trusty spreadsheet reviewed one-year changes in hotel room rates and occupancy levels for 2022’s first half in 19 markets, compiled by Visit California. Topline The urge to get out of the house helped push California’s average hotel room rate up 25% to $200 a night in 2022’s first six months. Travelers didn’t seem to mind, with occupancy at 75%, up 6 percentage points over 12 months. That’s a slightly bigger bump than what hotels nationwide saw — a 19% jump in rates to $155 as occupancy ran 70%, up 4 points. Details So where did visitors see the biggest rate jumps within California? Mostly in markets on a pandemic rebound. Largely, that meant coastal and urban sites once shunned in the height of 2021’s pandemic business limitations. Or it was in places where local…
Biotech-Focused IQHQ Buys San Diego Hyatt Regency in Rare Hospitality Acquisition
Biotech-Focused IQHQ Buys San Diego Hyatt Regency in Rare Hospitality Acquisition (costar.com) Deal Comes After Growing Life Science REIT’s $200 Million Office Purchase in Same Mixed-Use Complex By Lou Hirsh | CoStar NewsAugust 10, 2022 | 1:02 P.M. Biotech-focused IQHQ has made a rare hospitality purchase, acquiring the upscale Hyatt Regency La Jolla at Aventine hotel in San Diego for more than $216 million as the developer looks to expand its pipeline of properties targeted for high-demand life science space nationwide. Public loan and title filings show San Diego-based IQHQ this month closed escrow on the purchase of the 416-room Hyatt Regency, built in 1989 at 3777 La Jolla Village Drive in the city’s University Town Center neighborhood. The property was purchased for approximately $216.3 million from Singapore-based GAW Capital Partners. IQHQ also purchased the roughly 22,000-square-foot Aventine Atrium building next to the hotel at 8930 La Jolla Village Drive from GAW for approximately $11 million, according to public data. In October, IQHQ purchased the 11-story Aventine Office Building, next door to the Hyatt in the same mixed-use development, for approximately $205 million. IQHQ has yet to formally announce plans for the office building, where current tenants include CoStar Group, WeWork and brokerage JLL. IQHQ, which has…
Billionaire Mulls $650M Montage Laguna Beach Purchase: Report
The Montage Laguna Beach luxury resort may be getting a new owner in the near future. Patch.com – Posted Fri, Nov 4, 2022 at 10:39 am PT LAGUNA BEACH, CA — Montage Laguna Beach may come under new ownership in the future, after the Wall Street Journal reported a possible sale of the luxury resort this week. LAGUNA BEACH, CA — Montage Laguna Beach may come under new ownership in the future, after the Wall Street Journal reported a possible sale of the luxury resort this week. Billionaire Tilman Fertitta is close to buying the 250-room ocean-view hotel in coastal Orange County for roughly $650 million, the Orange County Register reported. Fertitta owns hotels across the country, including multiple Golden Nugget casinos and the luxury Post Oak Hotel in Houston. He also owns pro basketball’s Houston Rockets, and he has a 6.2 percent stake in Wynn Resorts Ltd., the operator of hotels and casinos in Las Vegas and Macau, the report said. The seller of Montage Laguna Beach is China’s Dajia Insurance Group Co., and a representative for the company did not respond to the Orange County Register’s request for comment. If the $650 million price tag is correct, the luxury…
TIME Hotels expands into Morocco
Time Hotels – 2 min read 3 November 2022 UAE-headquartered hospitality company signs agreement to manage equestrian eco-resort in Morocco’s Atlas Mountains UAE-headquartered TIME Hotels has signed an agreement to manage 35 luxurious lodges in an equestrian eco-resort in Ifrane’s National Park in Morocco’s Atlas Mountains, its first property in the North African country. The Atlas Crown Collection by TIME Resort will undergo a major extension and facelift which is expected to be completed by the end of 2023. It will comprise of 17 luxurious, cedar wood lodges, 18 hotel suites, a conference center, a heated outdoor & indoor swimming pool, restaurant, artificial lake, wellness spa, horse stables and a kids’ club. The rejuvenating spa offers Hamman along with massage treatments, combining both physical and mental wellbeing. The resort chef will also prepare menus using healthy organic food, with vegetable and herb gardens located in their extensive gardens. Outdoor activities include horse riding, mountain biking as well as hiking tours through the national park forest, enabling guests to connect with nature and admire the stunning views across the Atlas Mountains. Golfers will not feel left out either with the 18-hole Michlifen Golf & Country Club within easy reach. “The resort is located approximately…
Bloomberg: Billionaire Tilman Fertitta to buy Montage Laguna Beach
By: Dana BartholomewNovember 3, 2022 Resort’s reported price of $650M would represent record-setting $2.5M per room. If deal goes through, “World’s Richest Restaurateur” would pay $2.5M per room Billionaire Tilman Fertitta is nearing a deal to buy the 258-room Montage Laguna Beach resort for at least $650 million. The casino owner is on the brink of buying the cliffside luxury hotel at 30801 South Coast Highway, the Orange County Register reported, citing Bloomberg News. The seller would be ChinaDajia Insurance Group, which took over most of the operations of China’s Anbang Insurance Group. The group is shedding much of its hotel portfolio, including the Orange County property. The Wall Street Journal reported a possible Montage sale without naming a buyer, with a price of nearly $700 million. Fertitta, named by Forbes as the “World’s Richest Restaurateur,” built his fortune from the restaurant company Landry’s. He’s worth $7.8 billion, according to Forbes. The Houston-based businessman owns restaurants, hotels, amusement parks and casinos, including the upscale Post Oak Hotel in Houston, multiple Golden Nugget casinos and a 6.2-percent stake in Wynn Resorts, the operator of hotels and casinos in Las Vegas and Macau. His many restaurant brands include Morton’s the Steakhouse, Chart House, Bubba…
Billionaire Tilman Fertitta reportedly considering $650-million purchase of the Montage Laguna Beach
By: Andrew TurnerNovember 3, 2022 A Laguna Beach luxury resort could soon have new ownership, as reports have surfaced indicating that billionaire Tilman Fertitta has shown interest in acquiring the Montage Laguna Beach. The resort is owned by China-based Dajia Insurance Group Co., which has asked for as much as $700 million for the sale of the South Laguna hotel located at 30801 S. Coast Highway, according to the Orange County Business Journal. Bloomberg News reported that Fertitta is on the cusp of a $650-million deal to purchase the Montage, citing sources familiar with the situation who spoke on the condition of anonymity due to the private nature of the discussions. A 30-acre beachfront property that overlooks the Pacific Ocean from a coastal bluff, the Montage has 260 guestrooms, a hotel spokesperson confirmed. The resort opened its doors in 2003. The reported purchase price of $650 million would bring the price tag to $2.5 million per room. Alan Reay, the president of Atlas Hospitality Group in Newport Beach, described the Montage as “irreplaceable” oceanfront real estate and said the price-per-room average would rank second among hotel sales in state history. In November, the 59-room Alila Ventana Inn and Spa in…
Prized Marriott La Jolla Hotel Sold to New Owners in $187.6 Million Deal
News Source: www.lajolla.com November 3, 2022 The Marriott La Jolla has been sold in a $187.6 million deal that marks the second most expensive San Diego hotel sale this year. Marriott La Jolla is a 376-room property that was first built in 1985. According to the San Diego Union-Tribune, it has been sold as part of a portfolio sale worth multiple billions of dollars that closed last week. This isn’t the first time in recent history that the Marriott La Jolla has changed ownership. Back in 2016, Carey Watermark Investors bought the hotel on La Jolla Village Drive for $131 million. Carey Watermark Investors, which has since been renamed Watermark Lodging Trust, agreed earlier in 2022 to an acquisition deal by Brookfield Asset Management. Watermark’s holdings, which comprise more than 8,100 rooms at luxury properties across the globe, are now owned by Brookfield. For comparison, estimates suggest that Marriott La Jolla sold for about $188 million — around $500,000 a room. A few months ago, the Hyatt Regency La Jolla sold for $216 million. Because that was a 416-room hotel, the sale averaged $518,000 a room. According to hotel Alan Reay broker of Atlas Hospitality Group, the sale was a great…
Billionaire weighs buying Montage Laguna Beach resort for $650 million
The buyer is rumored to be restaurant and hotel owner Tilman Fertitta By: Staff & News Service ReportsNovember 2, 2022 Is the Montage Laguna Beach luxury resort about to get a new owner? Bloomberg News reports billionaire Tilman Fertitta is close to acquiring the 250-room oceanview hotel in Orange County for about $650 million, according to people with knowledge of the matter who asked not to be identified because the discussions are private. The Wall Street Journal reported a possible Montage sale without naming a buyer and put the price tag near $700 million. The seller is China’s Dajia Insurance Group Co., which took over most of the operations of Anbang Insurance Group Co. The group is shedding much of its hotel portfolio including the Orange County resort. A representative for Fertitta declined to comment. Dajia officials did not respond to a request for comment. Fertitta, who built his fortune from the restaurant company Landry’s, also owns hotels including multiple Golden Nugget casinos and the upscale Post Oak Hotel in Houston. He also owns pro basketball’s Houston Rockets. Plus, Fertitta recently reported holding a 6.2% stake in Wynn Resorts Ltd., the operator of hotels and casinos in Las Vegas and…
Hotel Sales Surged To Pre-Pandemic Levels Last Year, Reflecting Investor Confidence
As leisure travel made a comeback last year, deals for hotels worth $25M or more reached levels not seen since 2018. Total sales nearly quadrupled in 2021 compared to 2020, reaching $21.5B, Real Estate Alert reported. That number represents a 265% year-over-year increase, demonstrating investors’ confidence in the travel sector’s recovery and rising interest in deploying capital into the resurgent property type. Many of the top brokers increased sales by four or five times what they were closing in 2020. Hodges Ward Elliott earned the title of most active broker last year with sales totaling $5.19B, capturing a 27.8% market share, according to data from Real Estate Alert’s Deal Database. CBRE did $3.97B in sales, earning the second-highest total sales last year. Eastdil Secured brokered $3.49B, placing it in third despite increasing sales fivefold. JLL doubled its sales volume to just over $3B, but its overall market share dropped from 29.4% to 16.2%. The hotel industry finished 2021 with something of a bumpy landing. Though the industry reportedly set records during Thanksgiving week, the rise of the omicron variant increased uncertainty about cancellations. But that hasn’t affected investors’ confidence in the sector’s recovery, which Atlas Hospitality President Alan Reay in January predicted would rise on the back of leisure travel in “A” locations like…
