PLEASANT HILL — Hyatt House Pleasant Hill was bought through a court-ordered receivership as part of a nationwide portfolio of hotels whose loans had failed, according to public documents filed in a federal court in New York.
The 142-room East Bay hotel is tied to a $204 million loan that financed 22 hotels across the country, documents show.
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Located at 2611 Contra Costa Blvd., it is now owned by an affiliate linked to the Texas and Atlanta offices of London-based real estate and finance firm Mount Street U.S.
In May, the 128-room Hyatt Hotel Pleasanton also was seized by a Mount Street U.S. affiliate as part of the court-ordered receivership for the nationwide portfolio.
Hawaii-based Shidler Group purchased the portfolio of hotels in 2017.
In 2020, a few months after the COVID-19 outbreak, hotels in the portfolio that were managed by HHM Hotels were “cut off from some suppliers” and had “not made a payment in the last 2.5 weeks other than taxes,” according to federal court records.
Some hotels in the portfolio that were managed by Chartwell Hospitality appeared to be operating with no certainty that they could remain open for more than a week or so, court papers show.
“We are back to where we were two weeks ago, which is out of funds to keep these hotels open,” a Chartwell Hospitality executive stated, according to court papers.
The hotel managers were also scrambling to obtain funding from the COVID-era Paycheck Protection Program.
“There is an incredible amount of stress that is being put on the teams at these hotels while they work incredibly hard to keep the assets open for business,” Chartwell Hospitality stated in an email that was part of the court record.
The foreclosure proceedings against the two East Bay hotels represent only some of the problems that have engulfed the Bay Area lodging sector.
— The 500-room Oakland Marriott City Center in downtown Oakland was seized through a foreclosure on July 8 that placed a $70.2 million value on a lodging tower that in 2017 was bought for $143 million.
— On May 12, the 541-room Signia by Hilton, a downtown San Jose lodging tower that is the South Bay city’s largest hotel, was seized through a foreclosure that valued it at $80 million, well below the foreclosed loan’s $134 million total.
— The 162-room Courtyard Oakland Downtown was bought in October 2024 for $10.6 million, a nosedive of 76% from its prior value.
— In August 2024, the Hilton Oakland Airport Hotel abruptly closed its doors, a shutdown that eliminated 152 jobs.
— The 145-room Waterfront Hotel in Jack London Square shut down without warning in late January.
— The 289-room Radisson Oakland received an appraisal of $15 million in October 2024, according to Morningstar. That was a 70% plunge from the hotel’s prior value.
— A 276-room dual-branded hotel at 1431 Jefferson St. in downtown Oakland was taken back by its lender through a streamlined foreclosure process.