Getting your
Trinity Audioplayer ready...PLEASANT HILL — An East Bay hotel whose loan was foreclosed has been bought at a significant price discount that reflects the frail nature of the Bay Area’s lodging market.
Hyatt House Pleasant Hill has been bought for $3.3 million, according to documents filed on June 3 with the Contra Costa County Recorder’s Office.
An ownership group that’s linked to San Diego-based Kalthia Group Hotels bought the lodging hub, which is at 2611 Contra Costa Blvd. in Pleasant Hill, the county real estate records show.
In June 2025, an affiliate headed up by London-based real estate and finance firm Mount Street U.S. bought the 142-room hotel through a foreclosure.
The hotel had been in financial distress for years, and the Mount Street U.S. group auctioned off the hotel in late March of this year to the Kalthia Hotels-linked affiliate.
The Kalthia Group Hotels-linked ownership entity officially completed the buying process for the hotel with the filing of a grant deed for the property.
The final purchase price for the hotel works out to roughly $23,200 a room.
In sharp contrast, Northern California hotels were purchased during 2025 at a median price per room of $109,243, according to a report by Atlas Hospitality Group. That was more than four times what Kalthia Group paid for the Pleasant Hill hotel.
The values of the hotels also stand out in sharp contrast to the purchase price for the historic Hotel De Anza in downtown San Jose. The 100-room tower was bought in 2024 for $11.5 million.
At that time, the per-room price of $115,000 was thought to be the low point for the Bay Area hotel market. Hotel prices appear to have spiraled even lower.
Making matters worse, a growing number of Bay Area hotels — including in San Francisco, downtown Oakland, and downtown San Jose — have been foreclosed, further undermining values.
The collapse in values for hotels throughout the Bay Area, along with weak prices for commercial real estate assets such as office buildings, could jeopardize revenue streams from property taxes.
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.
In March 2025, a 276-room dual-brand hotel at 1431 Jefferson St. in downtown Oakland was taken back through a deed in lieu of foreclosure of a $112 million loan.
In May 2025, the Signia by Hilton hotel, a 541-room lodging tower in downtown San Jose, was taken back by its lender through a foreclosure that valued the hotel at $80 million, or $147,900 a room.
In July 2025, the Oakland Marriott City Center, a 500-room hotel tower in downtown Oakland, was seized by its lender in a $70.2 million foreclosure of a delinquent loan. That worked out to $140,400 a room.
Alchemy Real Estate Advisors represented the seller of the hotel in the auction and sale of the Hyatt House Pleasant Hill hotel.
“The transaction underscores continued investor demand for well-located extended-stay assets with operational upside in strong Bay Area submarkets,” Alchemy Real Estate said in an email to this news organization.