A new hotel is set to bring hundreds of rooms under two different Marriott brands to downtown Oakland.
Some 276 new rooms will be included in the 18-story hotel at the corner of Jefferson and 15th streets, the Mercury News reported. Hawkins Way Capital bought the site, at 1431 Jefferson Street, in 2019 through an affiliate for $30 million.
The two Marriott brands that will occupy the new development are AC Hotel and Residence Inn, which will offer 133 rooms and 143 rooms, respectively. The two brands will allow the hotel to cater to different markets, Lewis Wolff, a real estate investor who is advising Hawkins Way Capital, told the Mercury.
“A Residence Inn typically allows for longer stays and for guests who prefer to stay in their room to eat [and] an AC Hotel is kind of a trendy concept for shorter stays,” Wolff said. “This gives you a chance to hit two markets instead of just one. There are two lobbies, but you can easily walk from one to the other.”
Construction on the hotel has topped out and the remaining work consists mostly of interior work such as adding furniture, fixtures and finishes. The hotel is set to open this year.
(Courtesy of Stanton Architecture)
Investors spent a total of $9.9 billion on hotels in California in 2021, four times the total dollar amount spent in 2020, according to a recent report from hotel brokerage Atlas Hospitality Group.
Six hotels sold in San Francisco in 2021, compared with nine in 2020. The median price was $84.8 million, compared with $15.7 million the year prior.
Hyatt San Francisco Downtown, at 701 Third Street, changed hands recently for $105.9 million. That equates to about $460,243 per key, about $40,000 more than the median price in San Francisco in 2021.
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[MN] — Victoria Pruitt