Oakland Marriott City Center, the city’s largest downtown hotel, is defaulting on its loan.

By Olivia Harden, Travel Reporter Feb 22, 2025

In another blow to Oakland’s tourism industry, the largest hotel in the city’s downtown is defaulting on its loan.

The owners of the Oakland Marriott City Center, a 500-room hotel on Broadway, defaulted on its $100 million loan from Invesco CMI Investments, putting the property at risk of foreclosure, according to the Mercury News, citing Alameda County public records filed earlier this month. Gaw Capital, based in Hong Kong, purchased the hotel in 2017 for $143 million.

Oakland’s downtown Marriott joins several other Bay Area hotels facing financial upheaval, which industry insiders say is part of an ongoing trend.

“Lenders have been extending loans and pretending things might turn around,” Alan Reay, president of Irvine-based hotel market consultancy Atlas Hospitality, told the Mercury News. “Extend and pretend is coming to an end. More foreclosures are ahead. More hotel owners are going to walk away and just give the lenders the keys to their properties.”

The Oakland Marriott City Center is also home to a 31,800-square-foot practice facility that previously hosted the Golden State Warriors, according to the San Francisco Business Times, until the team left Oakland in 2019. The space was recently transformed into a practice facility for the new WNBA team the Golden State Valkyries.

The Valkyries Performance Center recently underwent a $40 million renovation and opened earlier this month. “We’re excited to see this dedicated space support the team as they prepare for an incredible season ahead,” the Oakland Marriott City Center wrote on social media at the time.

In the face of the default, Kimberly Veale, the team’s spokesperson, told SFGATE in an email that they “do not anticipate impact to our business or basketball operations at the Valkyries Performance Center.” 

The Marriott did not respond to a request for comment.