Monarch Alternative Capital Acquires Yotel San Francisco for $62MM

By Kate Snyder

A San Francisco hotel that had fallen into foreclosure was snapped up by a firm based in New York earlier this year.

An entity affiliated with Monarch Alternative Capital has acquired the Yotel San Francisco for $62 million, or $305,419 per unit, from Fidelity National Title Company, according to public records. The hotel had fallen into foreclosure, per industry reports, and was acquired by Fidelity earlier this year. The sale was recorded in early September, and public records put the number of units at 203.

The hotel is located at 1095 Market St., in the heart of downtown San Francisco. It sits on approximately 0.19 acres, and according to Google Maps, the surrounding area includes restaurants, the International Art Museum of America and various public outdoor spaces such as Civic Center Plaza.

The nine-story building was constructed in 1905, according to public records, and was known as the historic Grant Building, which was one of three structures that survived both the 1906 and 1989 earthquakes in San Francisco. The hotel opened under the Yotel name in 2019, incorporating tech-forward amenities such as self-check-in kiosks, whilst also maintaining the building’s history by blending certain original features into the hotel design, including exposed brick walls, arched windows and its original marble staircase.

According to the firm’s website, Monarch Alternative Capital has offices in New York and London and seeks “attractive opportunities across multiple verticals including corporate, real estate, structured credit, government debt, and special situations.”

In the first half of 2022, California hotel sales overall started to cool off compared to the year before, according to Atlas Hospitality Group’s 2022 Mid-Year California Hotel Sales Survey, and despite logging the highest number of sales on record, the group is predicting a large decline in sales in the second half of the year due to the rising cost of debt and uncertainty surrounding the direction of the economy and a potential recession.

In San Francisco County, individual sales were up 67 percent and dollar volume increased 34.5 percent, while the median price per room was down 23.2 percent, according to the report. The most expensive sale recorded in the first half of 2022 was the 230-room Hyatt Place in San Francisco at $142 Million.

West Coast Commercial Real Estate News