"The 102-unit Lodge at Tiburon was bought for no more than the $27.6 million in unpaid debt that burdened the hotel at the time of its purchase, according to a document on file at the Marin County Recorder's Office. Procaccianti Cos. paid $34 million for it in 2019, meaning the hotel's value has plunged by at least 18.8%."
"Denver-based hospitality group KSL Capital Partners, which this month bought Los Gatos' Toll House Hotel through a similarly swift foreclosure procedure, has also purchased The Lodge at Tiburon, documents in Marin County and Santa Clara County show. Rhode Island-based Procaccianti Cos., which bought the two boutique hotels in 2019, sold them to KSL for considerably less than their prior values."
"Despite the foreclosures, the Toll House Hotel in Los Gatos and The Lodge at Tiburon in the North Bay have plenty of upside due to their locations in markets that are desirable, said Alan Reay, president of Atlas Hospitality. These are both trophy assets, Reay said."
KSL Capital Partners acquired two Bay Area boutique hotels through foreclosure transactions, signaling continued distress in the region's hospitality sector. The Lodge at Tiburon was purchased for $27.6 million in unpaid debt, representing an 18.8% decline from its $34 million purchase price in 2019. The Toll House Hotel in Los Gatos experienced a steeper 31% value decline, selling for less than its $43.5 million 2019 price. Both properties were acquired by Rhode Island-based Procaccianti Cos. in 2019, before COVID-19 pandemic shutdowns devastated the hotel industry. Despite widespread foreclosures affecting San Jose, Oakland, and San Francisco hotels, industry analysts note these trophy properties retain significant upside potential due to their premium market locations.
Read at www.mercurynews.com
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