East Bay hotel is bought at a discount
Pleasant Hill property was part of failed nationwide hotel portfolio
By George Avalos | gavalos@bayareanewsgroup.com | Bay Area News Group
PUBLISHED: June 15, 2026 at 8:46 AM PDT | UPDATED: June 16, 2026 at 2:23 PM PDT
PLEASANT HILL — A hotel in Pleasant Hill whose loan was foreclosed was bought at a significant price discount that reflects the frail nature of the Bay Area’s lodging market.
Hyatt House Pleasant Hill was acquired by a group that’s linked to San Diego-based Kalthia Group Hotels for $3.3 million, according to documents filed on June 3 with the Contra Costa County Recorder’s Office.
In June 2025, an affiliate headed up by London-based real estate and finance firm Mount Street U.S. bought the 142-room hotel at 2611 Contra Costa Blvd. through a foreclosure.
The hotel had been in financial distress for years. The Mount Street U.S. group auctioned it off in late March to the Kalthia Hotels-linked affiliate.
Alchemy Real Estate Advisors represented the seller in the auction and sale.
“The transaction underscores continued investor demand for well-located extended-stay assets with operational upside in strong Bay Area submarkets,” Alchemy Real Estate said in an email to this news organization.
The Kalthia Group Hotels-linked ownership entity officially completed the buying process with the filing of a grant deed for the property.
The final purchase price works out to roughly $23,200 a room. In sharp contrast, Northern California hotels were purchased during 2025 at a median price per room of $109,243, according to a report by Atlas Hospitality Group.
The values also stand out in sharp contrast to the purchase price for the historic Hotel De Anza in downtown San Jose. The 100-room tower was bought in 2024 for $11.5 million, at a per-room price of about $115,000.
A growing number of Bay Area hotels — including in San Francisco, downtown Oakland, and downtown San Jose — have been foreclosed, further undermining values.
The collapse in values, along with weak prices for some commercial real estate assets, could jeopardize revenue streams from property taxes.
An example of weakness in the market, two of the largest hotel purchases in the Bay Area during 2025 both resulted from foreclosures whereby lenders became the owners of the distressed properties in separate transactions.
In March 2025, a 276-room dual-brand hotel at 1431 Jefferson St. in downtown Oakland was taken back through a deed in lieu of foreclosure of a $112 million loan.
In May 2025, the Signia by Hilton, a 541-room lodging tower in downtown San Jose, was taken back by its lender through a foreclosure that valued the hotel at $80 million, or $147,900 a room.
In July 2025, the Oakland Marriott City Center, a 500-room hotel tower in downtown Oakland, was seized by its lender in a $70.2 million foreclosure of a delinquent loan. That worked out to $140,400 a room.