"This is a great price for this hotel, said Alan Reay, president of Atlas Hospitality Group, which tracks the California lodging market. The buyer will be able to own this as a long-term investment. The $12.5 million price works out to roughly $80,100 a room. That's a huge decline from the property's assessed value and its per-room value derived from recent re-financings of the hotel, which is near Oakland San Francisco Bay Airport."
"In 2016, the hotel was refinanced for $43.9 million, and in 2018, the hospitality hub was refinanced for $32.1 million, according to Real Capital Analytics. The 2016 refinance worked out to $281,200 a room, while the 2018 financing revamp equated to $205,500 a room. The new purchase price is 63% below the assessed value of $33.5 million in January 2025 and represents roughly the same nosedive in value when compared with the refinancing in 2018."
"The hotel's previous owner, an affiliate of Ashford Hospitality Trust, defaulted on the hotel's loan in 2023 when the financing matured and became payable in full. A receiver was appointed in 2024 to take control of the property and prepare it for a sale. The new owner may be thinking the market will improve over the next five to 10 years, Reay said. If the market recovers, they can have a big"
The Courtyard by Marriott Oakland Airport, a 156-room hotel at 320 Hegenberger Road, sold for $12.5 million. Harprit Dhillon headed the affiliated buying group for the purchase. The sale price equals about $80,100 per room, substantially below previous financings and the current assessed value. The hotel was refinanced for $43.9 million in 2016 and $32.1 million in 2018, yielding per-room values of $281,200 and $205,500. The purchase is about 63% below the January 2025 assessed value of $33.5 million. The prior owner defaulted in 2023, a receiver managed the property in 2024, and the buyer likely expects recovery within five to ten years.
Read at www.mercurynews.com
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