Atlas in the news
LA Hotels Sales Spike in 2021, Bookings Still Recovering
BY: HANNAH MADANS WELK | MARCH 7, 2022 https://labusinessjournal.com/real-estate/large-number-of-l-a-hotels-sold-in-2021/ Hotel sales spiked in 2021 even as room bookings failed to hit pre-pandemic levels. In L.A. County, hotel transactions increased 26.2% from 61 to 77. Total dollar volume, meanwhile, rose a staggering 145.5% to $1.9 billion, the highest of any county in California, according to data from Atlas Hospitality Group. “The one word that sums up the 2021 survey is ‘record,’” said Alan Reay, president of Irvine-based Atlas Hospitality. “It’s nothing short of phenomenal coming off of the Covid years. This really showed a couple of things: One was a tremendous amount of capital raised in anticipation of hotel closures, and that didn’t happen. Then, you had a lot of transactions close with Project Homekey, the government program to purchase hotels, and those sellers were in the market for exchanges, and then you had portfolio sales.” Buck Harris, a senior director at Cushman & Wakefield Inc., added that, “Hotel markets were starting to thrive before delta and omicron hit.” Once the Covid strains hit, however, Harris said there were some concerns, but overall hotel sales were still strong last year. “There was definitely more activity, more volume in ’21 … There…
Big San Jose hotel sets early April reopening, ends one-year shutdown
Owner of Signia by Hilton hotel in San Jose says early April date is “firm” By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: March 14, 2022 at 8:30 a.m. | UPDATED: March 14, 2022 at 4:26 p.m. SAN JOSE — A big hotel in downtown San Jose that’s been closed for about a year has set a “firm date” for early April to reopen its doors to guests and is already taking reservations, the lodging’s owner says. Signia by Hilton, a double-tower hotel at 170 S. Market St. — formerly the location of the Fairmont San Jose — is slated to open the first week in April, said Sam Hirbod, the principal owner of the landmark lodging place. “April 7 is the opening date. That is firm,” Hirbod said. “We are taking reservations now.” The new hotel, located near the downtown San Jose convention center, also intends to offer unique dining and drinking experiences that the owners hope will be a magnet for both out-of-town visitors and people who live in Silicon Valley and other parts of the Bay Area. “We have elevated the culinary experience in the lounge, the restaurants and for banquets,” Hirbod said. “We want people to have a reason to…
Hotel openings blossom in Bay Area amid COVID lodging recovery
Six hotels are bringing about 1,800 rooms to four Bay Area cities By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: March 17, 2022 at 9:50 a.m. | UPDATED: March 18, 2022 at 3:49 a.m. https://www.mercurynews.com/2022/03/17/hotel-silicon-valley-bay-area-covid-real-estate-economy-tech-recover/ SAN JOSE — A burst of hotel openings in Santa Clara County and the East Bay points to widening confidence that the Bay Area lodging market is beginning to shake off its coronavirus-linked ailments. Six hotels have either opened or are close to opening their doors in downtown San Jose, downtown Oakland, Sunnyvale and Milpitas, raising hopes of a turnaround in the regional lodging sector. Still, while a recovery might be in the cards for the hotel markets in the Bay Area, the lodging industry won’t get back to full strength right away, cautioned Alan Reay, president of Atlas Hospitality Group. “In the long term, as offices start getting back to normal, business will pick up, but this will not happen overnight,” Reay said. Here are hotels involved in the current burst of openings: — Signia by Hilton San Jose, an 805-room double-tower hotel in downtown San Jose that had closed amid bankruptcy and coronavirus-linked difficulties, is slated to open in early April. For decades, the hotel, at 170…
Lodging leaders discuss California’s comeback at CLIC
By Donald Morrison | Mar 18, 2022 07:29am https://www.hotelmanagement.net/operate/lodging-leaders-discuss-californias-comeback-clic ANAHEIM, CALIF. – Market recovery, inflation and high construction costs in a post-pandemic world were three of the hot topics discussed by lodging industry leaders at this year’s recent California Lodging Investment Conference. The fifth annual CLIC event was held in-person for the first time in two years on March 10 at the JW Marriott Anaheim (Calif.) Resort. Just over 250 attendees registered for the event, according to CLIC’s founder and president, Craig Sullivan. “Everybody here is in the California hotel market, that’s all we’re focused on,” Sullivan said. “It’s the first time any of us have been together in-person in over two years.” The event kicked off with a keynote address from Bruce Ford, SVP and director of global business development at Lodging Econometrics, who used a range of lodging data to paint a picture of the state’s lodging industry and how it plans to recover in the wake of the COVID-19 pandemic. “Much of what owners and management companies have faced over the past 24 months has been no return on investment,” Ford said. “They’re interested in renovations today. They’re interested in brand conversions. They’re interested in getting back to…
The Line Gets $100M Loan
BY: HANNAH MADANS WELK | MARCH 28, 2022 https://labusinessjournal.com/tourism/hotels/the-line-gets-100m-loan/ The Line LA, a popular hotel in Koreatown, has received a $100 million loan. The Line is a 384-room hospitality property at 3515 Wilshire Blvd. Institutional Property Advisors, a division of Marcus & Millichap’s Jordan Ray, Steven Buchwald, Jamie Matheny and Lexington Henn arranged the financing for Yucaipa Cos., controlled by billionaire and Chairman Ron Burkle. “The property is strategically located in Koreatown right between Hollywood and Downtown L.A. Locals and guests love the restaurants, bars and active lobby scene. It’s a great midway point to meet in L.A.” Ray said in a statement. “We created a market and structured a very attractive deal that met the client’s needs and vision for the asset.” Corten Real Estate Partners provided the loan. “The Line LA represented a terrific opportunity for Corten to offer a tailored capital solution on a unique lifestyle hospitality asset in a high barrier-to-entry market that is beginning to recover from the pandemic,” Brandon Flury, a principal at Corten Real Estate, said in a statement. “We look forward to seeing the hotel restabilize and reach its full potential under the sponsor’s blue-chip stewardship.” The hotel market is recovering. In…
Hotel-To-Industrial Demolition Plan ShowsStrength Of Demand For Warehouses
June 13, 2022 | Bianca Barragan, Bisnow Southern California https://www.bisnow.com/los-angeles/news/industrial/hotel-to-industrial-conversion-hotel-fullerton-rexford-113391 Rexford Industrial (https://www.bisnow.com/tags/rexford-industrial) spent$45M to buy the Hotel Fullerton (https://www.bisnow.com/tags/hotelfullerton), a 1960s-era property on 7 acres just off the 91 Freeway inFullerton, but Rexford isn’t getting into the hotel business. Instead, the deal offers yet another sign of developers getting creative to find opportunities to build more industrial space in the tight infill market. The Hotel Fullerton is the latest in a string of redevelopment opportunities Rexford has pursued. The company plans to demolish the existing hotel and build a 140K SF, Class-A industrial (https://www.bisnow.com/tags/class-a-industrial) building, according to a Cushman & Wakefield release. The roughly 250-room hotel at 1500 South Raymond Ave. is industrially zoned, making that element of conversion theoretically smoother. In the past, cities have been hesitant to approve conversion of hotels to anything other than housing for lower-income or formerly unhoused tenants, which is in demand throughout the state. This property won’t require the developers to go through the process of trying to get those approvals, as the site already has the zoning for the use Rexford intends. Representatives for Rexford and the seller, Huoyen International Inc., did not immediately respond to requests for comment. “This sale…
Trinity, Oaktree Capital Buy Luxury Southern California Resort Hotel From Hyatt
Sale Points to Rebound for Coachella Valley Hospitality Industry After Two Years of Pandemic By Randyl Drummer | CoStar News April 5, 2022 | 3:49 P.M. https://www.costar.com/article/1084862773/trinity-oaktree-capital-buy-luxury-southern-california-resort-hotel-from-hyatt The Hyatt Regency Indian Wells Resort & Spa near Palm Springs, California, has been sold, the second sale of a large Coachella Valley resort hotel since December as the desert region’s hospitality sector rebounds from the pandemic. An affiliate of Honolulu real estate investor Trinity Real Estate Investments joined with Los Angeles-based Oaktree Capital Management to buy the 530-room hotel at 44600 Indian Wells Lane from hospitality giant Hyatt Corp., the joint venture said in a statement. Terms of the deal were not disclosed. The transaction follows global investor Blackstone’s sale at the end of 2021 of the historic 785-room La Quinta Resort & Club near Palm Springs to a British private equity firm for $255 million, the largest total price paid for a Southern California hotel in more than two years. That deal came in at about $325,000 per room. The sales, along with the return this month of two of the nation’s largest music festivals for the first time since 2019, could be signs of a rebound for the Coachella Valley, where the Greater…
Opening of big San Jose hotel is delayed a few weeks to late April
Long-time San Jose hotel is reopening with new operator, manager By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: April 11, 2022 at 10:11 a.m. | UPDATED: April 12, 2022 at 7:25 a.m. https://www.mercurynews.com/2022/04/11/open-big-san-jose-hotel-delay-late-april-real-estate-covid-economy/ SAN JOSE — The reopening of a big downtown San Jose hotel is now slated for late April, a delay of a few weeks triggered by nagging problems in the worldwide supply chain. The Signia by Hilton San Jose hotel is now due to open during the final week of April at the site formerly occupied by the Fairmont San Jose hotel, according to separate comments from the hotel’s owner and the property’s manager and operator. “April 25 is the date that the hotel is open for reservations,” a spokesperson for Signia by Hilton in San Jose said in an email to this news organization. Some external factors delayed prior plans for the hotel to open on April 7, which was the previous estimate provided by the hotel’s ownership group. “Shipping delays extended us for a couple of weeks,” said Sam Hirbod, principal owner of the property. The current schedule for the hotel means the prominent double-tower lodging will finally reopen just over a year after it shut down. In March…
Race for Rooms as Grand Prix of Long Beach Accelerates Greater LA’s Hospitality Rebound
Some Room Rates Exceed 2019 Levels in Greater LA, but Occupancy Still Trails Pre-Pandemic Levels By Jack Witthaus | CoStar News April 8, 2022 | 1:30 P.M. https://product.costar.com/home/news/139979861 The Grand Prix of Long Beach has supercharged the region’s hotels, driving occupancy back to pre-pandemic levels and boosting room rates at least for a weekend, an indication events are returning to pre-pandemic popularity. Josef Newgarden won this year’s IndyCar annual event, the headline race of five held in Los Angeles County’s second-largest city Friday through Sunday. The competition typically draws about 185,000 fans to its events and races, with about three-quarters from Southern California and the rest from other parts of the United States, Canada, Japan and Europe, according to the nonprofit Grand Prix Foundation of Long Beach. The race has an estimated $63 million economic impact for the region and a $34 million impact for the city of Long Beach, according to the group. This year, hotels mostly are sold out around Long Beach because of demand from the race, according to Samantha Mehlinger, vice president of communications of the Long Beach Convention & Visitors Bureau. That’s a good sign for retailers — and their landlords — across the country because…
Orange County Hotel Sells Amid Tourism Rebound in Disneyland’s Hometown
Utah Investor Acquires Anaheim Property from Special-Services Firm for $57.5 Million By Lou Hirsh | CoStar News April 14, 2022 | 4:28 P.M. https://product.costar.com/home/news/shared/1875836968?utm_source=newsletter&utm_medium=email&utm_campaign=personalized&utm_content=p4&t=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJjb250YWN0SWQiOiIxOTgzMzU2IiwiY3VsdHVyZUNvZGUiOiJlbi1VUyIsImlhdCI6MTY1MDAyODkwN30.jrdMV7aFSllbCEkb8yaiQYe8-OMQxU3PooYC_qBsuqg A Utah investor acquired an Anaheim, California, hotel for approximately $57.5 million, as Disneyland’s tourism-focused home region rebounds from effects of the pandemic. Provo-based Dynamic City Capital purchased the 190-room Portofino Inn & Suites, built in 1978 at 1831 S. Harbor Blvd., for a price amounting to approximately $303,000 per room, according to CoStar data and public filings. The property was acquired from a special-services firm that was assigned the property after a prior owner defaulted on a loan. The transaction price is among the largest of the past year for Orange County hotels, according to CoStar data, and underscores an overall rebound for the region’s hospitality industry. Hotels, stores and other businesses dependent on visitor spending were hit hard for more than a year after the pandemic’s start in March 2020, as Disneyland Resort and Anaheim’s convention center remained closed or operating at limited capacities. “We are seeing very strong interest in Orange County hotels and in Anaheim in particular,” said Alan Reay, president of hotel brokerage and research firm Atlas Hospitality Group, which was not directly involved…
Downtown San Jose hotel is part of $3.8 billion nationwide deal
Deal points to rising values for hotels in Bay Area By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: May 12, 2022 at 11:41 a.m. | UPDATED: May 16, 2022 at 1:11 p.m. https://www.mercurynews.com/2022/05/12/downtown-san-jose-marriott-hotel-3-8-billion-real-estate-deal-covid/ SAN JOSE — Three Bay Area hotels are part of a coast-to-coast lodging deal priced at $3.8 billion that gives one hotel in the transaction, the Marriott in downtown San Jose, a value that tops more than $200 million. Brookfield Real Estate Funds, a major investment firm, has bought Watermark Lodging Trust for $3.8 billion. The transaction gives Brookfield ownership of 25 hotel properties totaling 8,163 total rooms. Brookfield estimates that it paid an average of $481,300 a key — or room — for the hotel portfolio, which is roughly one-third resort hotels and two-thirds full-service hotels in an array of urban markets. At that per-key price, the 510-room San Jose Marriott at 301 S. Market St. downtown could be valued at $245 million. OpenComps, which tracks the hotel investment market, estimated that the price for the San Jose Marriott could be closer to $237 million, however. Either scenario would represent a hefty jump from both of the prior purchase prices for the hotel. In 2013, CBRE paid $83 million for…
Beverly Hills is getting an ultra-luxe hotel chain so exclusive you’ve probably never heard of it
BY ROGER VINCENT | STAFF WRITER JUNE 9, 2022 5 AM PT https://www.latimes.com/business/story/2022-06-09/beverly-hills-development-announces-ultra-luxury-hotel-aman At the Aman resort in the Turks and Caicos Islands, guest villas come with infinity pools and butlers who serve you a private romantic dinner on the beach. In a remote Utah desert, Aman guests can “camp” in tented pavilions with plunge pools and king-size beds. The Swiss company, owned by Russian real estate developer Vlad Doronin, was described by Forbes as “the world’s most preeminent resort brand” and attracts such notably affluent guests as Bill Gates, Mark Zuckerberg, and George and Amal Clooney. Launched in Thailand, Aman is known for its small resorts in exotic tropical locales or historically significant properties such as a 16th century palazzo in Venice. Now the celebrity-beloved ultra-luxe hospitality brand is coming to Beverly Hills as part of a $2-billion garden-like residential complex called One Beverly Hills. Its developers revealed Thursday that Aman will operate the hotel, a private club and some Aman-branded residences in a lushly landscaped oasis next to the storied Beverly Hilton hotel, where stars gather for the annual Golden Globe Awards. One Beverly Hills, announced in 2020, has city approval for a hotel with 42 rooms — all of them suites — and 37 hotel-branded condominiums, where owners can…
