{"id":172409,"date":"2026-02-10T21:19:08","date_gmt":"2026-02-10T21:19:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/172409\/"},"modified":"2026-02-10T21:19:08","modified_gmt":"2026-02-10T21:19:08","slug":"hotel-values-tumble-in-northern-california-but-perk-up-in-southland-2","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/172409\/","title":{"rendered":"Hotel values tumble in Northern California but perk up in Southland"},"content":{"rendered":"

SAN JOSE \u2014 As hotel values in 2025 rose in Southern California, a slump in Northern California showed a decline that suggests the market remains weighed down by a host of economic maladies, a new report shows.<\/p>\n

Per-room prices for hotel purchases fell in California primarily due to weaknesses in the Bay Area market, Atlas Hospitality Group<\/a> reported in its annual survey of hotel sales activity.<\/p>\n

\"AA drone view of the Oakland Marriott City Center in downtown Oakland, March 2024.\u00a0(Jane Tyska\/Bay Area News Group)<\/p>\n

\u201cDeal-making stayed difficult,\u201d stated the report, which was prepared by Atlas Hospitality Group President Alan Reay.<\/p>\n

In 2025, California hotels were bought at a median price per room of $138,409, down 7.3% from a median per-room price of $149,222 in 2024, according to Irvine-based Atlas Hospitality.<\/p>\n

Northern California hotel deals produced a median price per room of $109,243, Atlas Hospitality reported. That was down 14.8% from $128,181 in 2024.<\/p>\n

Southern California hotel purchases fetched a per-room median price of $171,642, 10.8% higher than the $154,958 price in 2024, Atlas Hospitality reported.<\/p>\n

\u201cFinancing costs, operating expense pressure (labor and insurance), and seller price resistance kept transactions from normalizing,\u201d Reay wrote in the report.<\/p>\n

Loan defaults, foreclosures, and hotel property auctions due to distressed financing show that an array of ailments afflict the region\u2019s lodging market.<\/p>\n

\u201cDistress broadened beyond isolated trades, with more defaults and lender-driven outcomes adding downward pressure to comparables and keeping buyers cautious,\u201d Reay wrote in the report.<\/p>\n

This year looks to remain gloomy, Reay said.<\/p>\n

\u201c2026 is still going to be tough for hotel sales,\u201d Reay said in an interview with this news organization. \u201cThe underlying factors are still the increase in expenses, which put pressure on net operating income for hotels. Plus, interest rates have come down, but not as much as people have expected.\u201d<\/p>\n

An example of weakness in the market, two of the largest hotel purchases in the Bay Area during 2025 both resulted from foreclosures whereby lenders became the owners of the distressed properties in separate transactions.<\/p>\n

In March 2025, a 276-room dual-brand hotel at 1431 Jefferson St.<\/a> was taken back through a deed in lieu of foreclosure of a $112 million loan.<\/p>\n

In May 2025, the Signia by Hilton hotel, a 541-room lodging tower in downtown San Jose<\/a>, was taken back by its lender through a foreclosure that valued the hotel at $80 million, or $147,900 a room.<\/p>\n

In July 2025, the Oakland Marriott City Center, a 500-room hotel tower in downtown Oakland<\/a>, was seized by its lender in a $70.2 million foreclosure of a delinquent loan.<\/p>\n

Brutal conditions, however, could lead to a rebound in the region.<\/p>\n

\u201cThere is no question the Bay Area has hit its lowest point,\u201d Reay said. \u201cIt might be coming back up.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"SAN JOSE \u2014 As hotel values in 2025 rose in Southern California, a slump in Northern California showed…\n","protected":false},"author":2,"featured_media":172410,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[389,184,764,387,7,3010,392,1335,4978,332,383,4731,181,992,3938,41706,100,993,395,388,396,88,90,89,397,198,2720,3628,200,1970],"class_list":["post-172409","post","type-post","status-publish","format-standard","has-post-thumbnail","category-san-jose","tag-alameda-county","tag-bay-area","tag-berkeley","tag-business","tag-california","tag-commercial-real-estate","tag-contra-costa-county","tag-development","tag-downtown-san-jose","tag-east-bay","tag-economy","tag-hotels","tag-latest-headlines","tag-marin-county","tag-napa-county","tag-newark","tag-news","tag-north-bay","tag-peninsula","tag-real-estate","tag-san-francisco-county","tag-san-jose","tag-san-jose-headlines","tag-san-jose-news","tag-san-mateo-county","tag-santa-clara-county","tag-solano-county","tag-sonoma-county","tag-south-bay","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/172409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=172409"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/172409\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/172410"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=172409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=172409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=172409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}