Ensemble looks to build luxe hotel on Oyster Point in South SF
Wyndham hotel near SF airport trades for $31M
Room occupancy trends up with “the return of some major citywide conferences”
An entity managed by Compton-based investor Rajesh Patel acquired a Wyndham brand hotel near the San Francisco Airport, according to public records. Patel purchased the hotel for $31 million from Delaware-based Cavalier California.
La Quinta Inn and Suites is located at 20 Airport Boulevard in South San Francisco. The 84,000-square-foot hotel has four stories with 170 rooms. It is located two miles from the San Francisco International Airport, 10 miles to San Francisco, and 15 miles from San Francisco State University. Amenities include a fitness center, a pool and free parking.
This is Patel’s first deal in California, but not with Wyndham. He also owns a Microtel Inn and Suites in Port Charlotte, Florida, according to property records.
The San Mateo hospitality market, along with San Francisco, has started to recover from the halt in business travel due to the pandemic, according to a report by Matthews Real Estate.
“The boost in performance was attributed to the return of some major citywide conferences … bringing a number of visitors to the area,” the report said.
There are about 1,200 rooms in eight hotels under construction in the San Francisco/San Mateo market. Most of the under-construction hotels are expected to open in 2023, increasing hotel inventory by 2.4 percent, assuming no delays.
One hotel in the pipeline is a 350-room luxury property with Bay views on Oyster Point in South San Francisco. Ensemble investments is planning a project that will include a restaurant, ballroom, meeting rooms, a gym and rooftop bar.
San Jose has faced a slower recovery than San Mateo and was one of the hardest hit markets during the pandemic. Annual hotel room demand and average daily rate are not projected to recover to 2019 levels within the next few years, and due to an unusually high influx of hotel inventory entering the market, occupancy should recover by 2027, according to the Matthews report.
One project that is expected to add to the inventory is a 176-key Marriott TownePlace Suites in Downtown San Jose under development by locally based-Urban Catalyst. It will be Downtown San Jose’s first extended stay hotel, and is slated to be completed in the first quarter of 2025.