Milpitas Marriott Property is Latest Bay Area Hotel Sale

Yet another Bay Area hotel is changing hands.

The 194-room Element by Marriott San Jose Milpitas has been sold to an unidentified buyer, with the new owner slated to assume management early this summer, the San Francisco Business Times reported. Terms of the deal, including pricing, have not been disclosed.

The hotel’s operator, Lodging Dynamics Hospitality Group LLC, said the new owners will also take over management of the property starting June 27, coinciding with the last match of the FIFA World Cup scheduled to play at nearby Levi’s Stadium.

The five-story select-service hotel at 521 Alder Drive will remain open and there will be “no interruption in employment or benefits based on communication from new hotel ownership,” according to Lodging Dynamics Hospitality Group. The current operator lists 42 layoffs across hotel operations from housekeeping to food service but noted that employees at the Element will likely be retained under the new ownership without changes to pay or benefits.

Developed by Utah-based Dynamic City Capital, the property opened in 2022 as the largest of seven new hotels delivered in Santa Clara County that year. Construction began before the pandemic, landing the finished product in a rough recovery period for hospitality properties across the region that is still underway. Dynamic City still holds other Bay Area hospitality assets, including the Hyatt Place San Francisco Downtown and an AC Hotel by Marriott in Milpitas.

The transaction marks the second notable hotel sale in Milpitas in under a year, following the disposition of the 230-key Sheraton San Jose Hotel last year for $20.1 million. Elevated borrowing costs and rising operating expenses, particularly labor and insurance, continue to weigh on hotel valuations, according to Atlas Hospitality Group data cited by the Business Times.

Hotels across the Bay Area, and Silicon Valley in particular, have been increasingly falling into distress and selling in recent years. At the same time, construction of new hotels has slowed. In 2025, 15 hotels totaling 1,610 rooms were under construction, marking a sharp drop from 2024’s 21 projects with 2,452 rooms, per Atlas data. That works out to a 34.3 percent decrease in rooms and a 28.6 percent decline in hotel properties year over year.

— Chris Malone Méndez