Hospitality developer Prospera Hotels has acquired the Hilton Garden Inn near San Francisco International Airport.
The property, located at 765 Airport Boulevard in Burlingame, is a 132-key hotel halfway between San Francisco and Palo Alto. The 77,874-square-foot hotel changed hands in a $26.8 million deal, property records show. The sale closed July 19.
The seller is Washington-based entity 765 Airport Boulevard LP. It’s unclear how long the partnership has owned the hotel. However, the entity has been the signatory for documents relating to the property dating back to the early 1990s.
The sale comes as San Francisco’s hotel market continues its steady recovery from the pandemic. According to data from the city’s tourism bureau, hotel occupancy in the city reached a pandemic-high of 67.2 percent in April. During that month, the city’s average daily room rate was $226.59, also a high since the start of the pandemic.
These findings were corroborated by a recent report from Calabasas-based brokerage Marcus & Millichap. The study forecast that the average daily rate in the city, calculated for the entirety of 2022, would reach $213.10. That figure would amount to a 38.5 percent jump, the most rapid annual increase ever recorded in the city. The revenue per available room, which includes empty rooms, is expected to reach $137.13 by the end of the year, an 88.5 percent increase compared to the previous period.
Marcus & Millichap said “the Bay Area has undergone a more protracted recovery” than the Southern California hospitality industry.
Propspera Hotels, which is headed by CEO Ajesh Patel, owns nine properties in California and Florida, according to its website. Most of its assets are located in Anaheim. Its portfolio includes the JW Marriott Anaheim Resort, a 466-room hotel that has the distinction of being the first JW Marriott in Orange County; and the Hyatt House Anaheim Resort, a 264-key extended-stay hotel near Disneyland.