SUNNYVALE — A Courtyard by Marriott hotel in the South Bay has been bought by a major real estate player for nearly $50 million in a deal that shows some interest in the lodging market despite coronavirus-linked woes.
Blackstone Real Estate, acting through an affiliate, has bought the hotel, paying $47 million, according to documents filed on Oct. 31 with the Santa Clara County Recorder’s Office.
The hotel was part of a portfolio of several hotels around the country that Blackstone Real Estate had previously agreed to buy.
The deal was completed this week, the county records show. Blackstone bought the hotel through an all-cash deal.
The $47 million that Blackstone paid represented the full value of the property, according to the real estate documents.
The Courtyard by Marriott Sunnyvale Mountain View totals 145 rooms.
The hotel is in a prime stretch of El Camino Real near a number of Silicon Valley tech hubs. It’s also a short distance from the interchange of state routes 85 and 237.
The deal suggests that investors still see value in Silicon Valley hotel properties under the right circumstances, even amid ongoing economic uncertainties.
The coronavirus unleashed brutal economic maladies on the lodging and travel sector in the Bay Area and worldwide.
These industries have struggled to recover from their downturn in the wake of wide-ranging business shutdowns that government agencies imposed to curb the spread of the deadly bug.
Under-performing occupancy levels and drooping room rates are among the ailments that have weakened hotels and the travel industry.
Source: www.mercurynews.com