MILPITAS \u2014 A South Bay hotel has been bought by a California group in a purchase that suggests weak values in the lodging sector have begun to entice more investors.<\/p>\n
The Element hotel at 521 Alder Drive in Milpitas was bought for $46.2 million by an affiliate of San Diego-based Pacifica Host Hotels, a grant deed filed in Santa Clara County on July 15 shows.<\/p>\n
By some measures, the deal for the 194-room hotel offers hopeful signs for the reeling hospitality sector in the Bay Area. By other metrics, however, the transaction is a reminder that ailments still linger for hotels in the region.<\/p>\n
The Milpitas hotel was bought at a price that equated to $237,900 a room. That was considerably higher than the $109,243 median price for hotels sold in Northern California<\/a> during 2025, as reported by Atlas Hospitality Group.<\/p>\n The deal, though, also hints at a flat price for the Milpitas hotel. The Element hotel\u2019s price was only 1.7% above its assessed value of $45.6 million in January 2026. Assessed values are one of multiple metrics to measure how much a property is worth.<\/p>\n The plunge in hotel values could be starting to entice investors. Some buyers are landing hotels in the Bay Area at ultra-low prices.<\/p>\n A 128-room Hyatt House hotel in Pleasanton<\/a> was bought for a stunning $800,000, or just $6,250 a room. A Hyatt House hotel in Pleasant Hill<\/a> was purchased for $3.3 million, or $23,200 a room. Both hotels were acquired in June.<\/p>\n The new ownership group for the Element hotel in Milpitas states that it is involved with 45-plus boutique, lifestyle and branded hotels in the United States.<\/p>\n \u201cWe operate a large chain of hotels in some of the best locations across the nation,\u201d the company states on its website. \u201cWe have a large footprint across the West Coast, Texas, and Florida, as well as Mexico.\u201d<\/p>\n \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"MILPITAS \u2014 A South Bay hotel has been bought by a California group in a purchase that suggests…\n","protected":false},"author":2,"featured_media":400977,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[184,387,7,8,3010,1335,383,4731,1533,181,23,191,100,388,88,90,89,198,94685,200],"class_list":["post-400976","post","type-post","status-publish","format-standard","has-post-thumbnail","category-san-jose","tag-bay-area","tag-business","tag-california","tag-california-news","tag-commercial-real-estate","tag-development","tag-economy","tag-hotels","tag-keywee","tag-latest-headlines","tag-local-news","tag-milpitas","tag-news","tag-real-estate","tag-san-jose","tag-san-jose-headlines","tag-san-jose-news","tag-santa-clara-county","tag-social-alert","tag-south-bay"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/400976","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=400976"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/400976\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/400977"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=400976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=400976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=400976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}