By Jon Peterson
Redwood Shores-based Oracle Corporation has now placed on the market for sale the leasehold interest in the 476-room San Mateo Marriott San Francisco Airport hotel. The potential price point on the sale could reach $190 million, according to sources familiar with the sale of the property.
Oracle has hired the San Francisco office of Eastdil Secured to be the listing agent on the sale.
The seller of the property has owned the asset since 2016. It paid $132 million for the hotel at that time, according to public records and previous reporting by The Registry. Oracle had purchased the hotel from Newport Beach, Calif.-based Tarsadia Investments. The idea behind the purchase was to utiilze the property as a home for the company’s sales staff that would be visiting the region for training and other corporate function purposes. The hotel is located about four miles from the owner’s corporate headquarters.
The property had gone through a $47 million renovation that was completed in October of last year. Some of the work done to the property included a redesign of the lounge-style lobby and dining space and a renovated guest registration area. The long-range goal with the improvements was to tailor the property to the evolving Bay Area corporate, group and leisure user base and positioning the asset for significant near-term performance growth.
The San Mateo Marriott is located in an area that has very high barriers to entry. There isn’t enough land in the region to build a competing property of similar quality and size, and the increasing development costs also make it financially difficult to build additional hotels.
The hotel does have a strong location given its proximity to the San Francisco International Airport. It would likely take the hotel guests a 10-minute drive to the airport, which is convenient for travelers visiting either San Francisco or Silicon Valley. The hotel is also just minutes from other corporate clusters in the region along the US 101 and SR 92 intersection, which connects the cities of San Mateo, Foster City and Redwood City. Several new developments have sprouted along that corridor, giving this hotel property a central location.