"LIVERMORE - A Livermore hotel has been foreclosed by its lender in a sign that the Bay Area hospitality market continues to stagger from a series of jolts unleashed by slumping prices and delinquent loans. The Super 8 by Wyndham hotel, a 102-unit lodging property at 4673 Lassen Rd., landed in financial difficulty after its owner defaulted in March 2025 on a $7.7 million loan provided by State Bank of Texas."
"State Bank of Texas has now foreclosed on the loan to satisfy the financing delinquency, documents filed with the Alameda County Recorder's Office show. The prior owner of the hotel, an affiliate headed up by Texas-based business executive Jagmohan Dhillon, filed for bankruptcy in May 2025 in connection with the Livermore hotel, court records show. Ultimately, the bankruptcy only delayed the foreclosure."
"The foreclosure is just one component of what has become a brutal landscape for the lodging market in the Bay Area. Hotel construction has plunged, a nosedive that was unleashed by stubborn problems for hotel financing and elevated construction costs, Atlas Hospitality Group reported recently. An estimated 15 hotels with an aggregate of 1,610 rooms were under construction in the Bay Area during 2025, representing a sharp decline from 2024, according to the report."
The Super 8 by Wyndham in Livermore, a 102-unit property at 4673 Lassen Rd., fell into financial distress after its owner defaulted in March 2025 on a $7.7 million loan from State Bank of Texas. State Bank of Texas foreclosed on the loan to satisfy the delinquency, according to county records. The prior owner, an affiliate led by Jagmohan Dhillon, filed for bankruptcy in May 2025, which only delayed the foreclosure. The foreclosure reflects broader weakness in the Bay Area lodging market. Hotel construction has plunged amid financing problems and higher construction costs, with projects declining from 21 (2,452 rooms) in 2024 to 15 (1,610 rooms) in 2025.
Read at The Mercury News
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