After acquiring a large Motel 6 portfolio in 2012, Blackstone is now attempting to dispose of portions of the portfolio across the Bay Area. In recent months, the global investment company has sold off four Motel 6 assets for a combined total of $40.3 million, according to reporting from the Mercury News.
In the most recent deal, Blackstone sold a 100-room Motel 6 property at 3208 El Camino Real in Santa Clara for $13.5 million, or approximately $135,000 per room. The property was sold on July 7 to an entity affiliated with DMC Hotels and Dhillon Management.
On June 23, the company also sold a 127-unit hotel at 6110 Monterey Road in Gilroy for $10.5 million, or roughly $82,677 per room. The buyers in the transaction were Canoga Park, Calif.-based investors Jayesh and Hemaben Patel, according to public records.
Earlier in June, the company also disposed of its Motel 6 property at 2081 N. First Street in North San Jose. The 76-room hotel was sold to an entity affiliated with Milpitas-based Temple Santa Nella for $8.5 million, or about $111,842 per room.
The fourth sale, which closed on May 20, was for a Motel 6 at 1240 Camden Avenue in Campbell. The 19-room hotel was purchased by San Francisco-based Ambika Enterprises for $7.8 million, or $410,526 per room.
In 2012, Blackstone bought G6 Hospitality – the parent company of both Motel 6 and Studio 6 – for approximately $1.9 billion. The purchase included approximately 1,102 hotels, according to a previous news release from Blackstone at the time of the acquisition.
Blackstone began investing in real estate in 1991 and has since expanded its portfolio to include a variety of property types, asset classes and locations. Currently, the company has $298 billion of investor capital under management and a total portfolio valued at $550 billion.