Denver-headquartered buyer scores 2 Bay Area hotels at deep discount

"KSL Capital Partners purchased the hotels through foreclosure transactions from Procaccianti Cos. Both real estate investors are headquartered outside California; Procaccianti Cos. is in Rhode Island, and KSL Capital Partners is in Denver. The collective $57.6 million price tag is a noteworthy decline from what Procaccianti Cos. originally paid for the hotels."

"The pair cost about $77.5 million in 2019 when hospitality real estate was at a peak. At the time, in San Francisco, the lodging market was one of the top three in the country in a crucial ranking for RevPAR, or revenue per available room. The city's hotel market has started to bounce back after backsliding during the pandemic."

KSL Capital Partners purchased two four-star hotels in the Bay Area—The Lodge at Tiburon and the Toll House Hotel in Los Gatos—through foreclosure transactions from Procaccianti Cos. The Toll House Hotel sold for no more than $30 million, while The Lodge at Tiburon sold for no more than $27.6 million, totaling $57.6 million. This represents a significant decline from the $77.5 million Procaccianti Cos. paid for both properties in 2019 when the Bay Area hospitality market was at peak performance. San Francisco's lodging market ranked among the top three nationally for revenue per available room at that time. The market has since recovered following pandemic-related declines and demonstrated strength during the recent Super Bowl.

Read at SFGATE