Another East Bay Hotel Sells Months After Loan Sale

An East Bay hotel changed hands months after being auctioned off by the lender that foreclosed on the loan.

The 142-room Hyatt House Pleasant Hill sold for $3.3 million, or roughly $23,200 per room, the Mercury News reported, citing Contra Costa County Recorder’s Office records. An affiliate tied to San Diego-based Kalthia Group Hotels acquired the property, at 2611 Contra Costa Boulevard.

The hotel had been in distress for years, the outlet said. A lender affiliate led by London-based Mount Street U.S. took control of the property through foreclosure in June 2025, then auctioned the loan off in March for $3.5 million. The Kalthia-linked buyer just completed the acquisition, a year after its seizure.

The pricing stands out even in the Bay Area’s battered hotel market. Northern California hotels traded at a median price of about $109,000 per room in 2025, according to Atlas Hospitality Group. The Hyatt House Pleasant Hill sold for less than a quarter of that benchmark.

The deal also marks a sharp drop from what was once considered a floor for Bay Area hotel values. San Jose’s historic Hotel De Anza traded for $11.5 million, or about $115,000 per room, in 2024, viewed as a low-water mark for the region’s hospitality sector.

Hotel values have continued to erode as lenders increasingly take control of distressed assets. Several Bay Area properties have entered foreclosure over the past year, including a 276-room dual-branded Marriott hotel at 1431 Jefferson Street in Oakland, the 541-room Signia by Hilton in downtown San Jose and the 500-room Oakland Marriott City Center. These transactions have largely been lender takeovers rather than traditional sales.

The drop in property values for Bay Area hotels as they fall into distress is likely to have a ripple effect on local governments’ tax proceeds.

“All of a sudden, you are going to find that property tax revenues for cities, counties, and school districts are going to be plummeting,” Atlas Hospitality president Alan Reay told the Mercury News, saying “Public agencies are going to be faced with slashing their budgets, cutting employees, raising taxes.”

Kalthia has been on a buying spree over the past year, scooping up distressed properties out of foreclosure, specifically in the South Bay. Last month, the firm purchased the 88-room Super 8 by Wyndham in San Jose for $8 million. In December, the firm bought the 114-room Sonesta ES Suites San Jose Airport hotel for $16 million. Shortly thereafter, Kalthia spent another $15 million for a second Sonesta ES Suites, this one featuring 138 rooms at 900 Hamlin Court in Sunnyvale. Early last year, Kalthia proposed converting the Sonesta ES Suites rooms into housing, though the current status of the plan is unclear.

— Chris Malone Méndez