Another East Bay Hotel Sells After Foreclosure

Another week, another distressed hotel sale in the Bay Area.

A group led by Santa Clara-based investor Ashok Goyal bought the 112-room Hyatt Place Newark/Silicon Valley hotel in Newark for nearly $19.8 million, Mercury News reported, citing Alameda County property records. The hotel at 5600 John Muir Drive traded for roughly $176,000 per key.

The deal follows a bruising stretch for the relatively new property. State Bank of Texas seized the hotel in October through a foreclosure tied to roughly $25.8 million in unpaid debt after Shivam Real Estate defaulted on its loan. The asset was appraised at $41 million in May 2025.

Atlas Hospitality Group listed the hotel for $21.9 million and facilitated the sale. The Hyatt Place opened in 2023, though the property was built more like a full-service hotel than a traditional limited-service Hyatt Place, according to Atlas.

“Recently constructed hotels that have not yet reached stabilization require a very specific buyer profile,” Atlas Hospitality’s Justin Myers told the Mercury News. “We focused our efforts on identifying experienced hotel operators and investors that recognized both the operational upside and long-term strength of the Silicon Valley lodging market.”

Goyal, Myers said, “has experience in the hospitality industry,” having “been a hotelier for a number of years.”

Hotels across the Bay Area have fallen into default and foreclosure in recent years as the local lodging market struggles to climb out of a post-pandemic slump. The loss in value for those properties has given investors an opportunity to swoop in and acquire those hotels at bargain-basement prices.

Earlier this spring, two other Hyatt properties in the East Bay, the Hyatt House in Pleasant Hill and the Hyatt House in Pleasanton, were acquired at a foreclosure auction in late March. The 142-room Hyatt House Pleasant Hill sold for $3.5 million, or $26,600 per room, while the 128-key Hyatt House Pleasanton was auctioned off for $800,000, or roughly $6,250 per room. Also in March, New York-based EOS Investors bought the 189-key Barnes San Francisco hotel at 225 Powell Street in Union Square for an undisclosed price.

— Chris Malone Méndez