UPDATED Sept. 17, 2021, 2:43 p.m.: Updates price in second paragraph.
The Hilton Garden Inn Fremont Milpitas landed a buyer that has been snatching up hotel properties in the Bay Area, the Mercury News reported.
AWH Partners, which recently purchased the historic Villa Florence Hotel in Union Square for $87.5 million, bought the Hilton property in Fremont for $$41.7 million.
The property, which completed construction earlier this year, features 145 rooms, a fitness center, a business center and an indoor swimming pool. There is also a restaurant and 24-hour market included in the hotel.
This latest purchase suggests the hotel industry is bouncing back from the effects of the Covid-19 pandemic.
Alan Reay, president of Atlas Hospitality Group, which monitors the lodging market in California, said buyers are starting to look at the bigger picture and plan for the long term.
“The product type of this hotel is the kind of product that is coming back faster after Covid than the major full-service hotels,” Reay said. “This hotel typically has a much better profit margin than the really big hotels. It’s a very good model and is very successful.”
The hotel, located at 45976 Warm Springs Boulevard, also has the advantage of being located in the Fremont Innovation District in the Silicon Valley.
“Silicon Valley is probably in the top three or five of the commercial business travel centers,” Reay said. “It’s supply and demand. There’s a lot of buyer interest out there right now in hotels.”
While the Hilton Garden Inn in Fremont will not require much work to complete, AWH Partners has renovations and upgrades planned for the Villa Florence Hotel in San Francisco.
Another property in San Francisco’s Transbay District recently secured Rosewood Hotel and Resorts for a 180-room hotel. The mixed-use tower located at 550 Howard Street is expected to take four years to complete.
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[Mercury News] — Victoria Pruitt