Oakland Moxy Hotel Defaults on $35 Million Loan

Another hotel in Oakland has fallen into loan default.

Downtown Oakland’s 172-room Moxy Oakland Uptown hotel, a Marriott International property, is in default on a $35 million loan it secured in 2022 from Acore Capital Mortgage, the Mercury News reported.

San Francisco-based real estate firm Tidewater Capital and Minneapolis-based hotel management company Graves Hospitality developed the property, which opened in 2021. At the time it debuted, it was one of several new hotel developments across the Bay Area. But it has joined the growing number of lodging properties in the region to default on loans, with several of those facing foreclosure and sinking property values.

The 500-room Oakland Marriott City Center in downtown Oakland was seized last month in a foreclosure that placed its value at $70.2 million — over 50 percent less than its 2017 sale price of $143 million. The 142-room Hyatt House Pleasant Hill was foreclosed the month prior.

The 541-room Signia by Hilton hotel in downtown San Jose was seized in a foreclosure on a $134 million loan for the building valued at $80 million in May. That same month, the 128-room Hyatt House Pleasanton was also seized through a foreclosure proceeding. The month before, a 276-room dual-branded Residence Inn and AC Hotel in downtown Oakland was taken back by its lender through a streamlined foreclosure process.

In Berkeley, Kubera Hotel Properties defaulted on its loan for the 113-room University Inn & Suites; that property is off to a foreclosure auction, and the owner filed for bankruptcy in June. A Motel 6 in San Jose and Super 8 locations in San Jose and Livermore are also facing loan defaults.

Others that haven’t faced foreclosure have seen their values drop.

The 162-room Courtyard Oakland Downtown sold last October for $10.6 million, marking a 76 percent decrease in price from its prior value, the Mercury News reported. The 289-room Radisson Hotel Oakland Airport received an appraisal of $15 million, representing a 70 percent drop from its previous value.

Some hotels have closed their doors entirely, including the Radisson Oakland Airport.

The 145-room Waterfront Hotel in Oakland’s Jack London Square shut down abruptly in January. Last August, the Hilton Oakland Airport Hotel also closed, eliminating 152 jobs.

— Chris Malone Méndez