By Jon Peterson
Activity in the San Francisco Bay Area hotel has picked up some steam recently with one closed acquisition and another asset placed on the market for sale.
The property that was purchased was the 135-room Huntington Hotel in San Francisco, which was bought for $62.3 million, or $461,481 per room, by Los Angeles-based Woodridge Capital, as stated by sources that track the sale of hotels in California. The property that was placed on the market for sale is the 421-room Pullman San Francisco Bay Hotel in Redwood City, according to published reports. The sale of the Pullman hotel would be the third in this cycle.
Woodridge Capital did not return phone calls seeking comment for this story. The seller of the property was Singapore-based Grace International, which had acquired the property for $42.1 million in 2011, according to public records.
The new owner of the Huntington property is planning to make some improvements to the asset, according to industry sources familiar with the property. The investment will include the upgrades to the interior of the property.
The current owner of the Pullman property is Los Angeles-based CBRE Global Investors. This investor declined to comment on the property or the specifics about the possible sale.
CBRE has held ownership of the asset since December of 2015. The real estate investment firm acquired the property for $154.5 million, according to public documents, from a joint venture of Prudential Real Estate and Lodging Capital. This entity purchased the property about 3 years earlier for just over $90 million. When the property was acquired, it was known as the Sofitel Hotel.
Hotels in both San Francisco and on The Peninsula are showing strong operating fundamentals, according to data from CBRE Hotels through July 2018. Hotels in San Francisco held firm with 91 percent occupancy. The RevPAR growth has increased by 9.9 percent up to $274.80. The numbers for the Peninsula/San Jose region are an occupancy of 91.3 percent and RevPAR up by 9.7 percent to $183.60.