UPDATE: The Sonesta Select hotel in Pleasant Hill has been sold for $12 million, raising urgent concerns about the ongoing struggles in the Bay Area lodging market. Documents filed on September 25, 2025, with the Contra Costa County Recorder’s Office, reveal that the sale price is a staggering 38% below the assessed value of $19.4 million, indicating persistent weakness in property values.
The acquisition, made by an affiliate of the Vinod and Nayna Patel family trust, underscores the challenges facing the regional hotel sector. The transaction, facilitated by Hospitality Properties Trust, a real estate investment trust, highlights a market still reeling from the effects of the COVID-19 pandemic, which devastated travel and hospitality industries worldwide.
As the hospitality landscape shifts, occupancy levels in the Bay Area are on the rise, yet the financial health of hotel properties remains shaky. The sale of the Sonesta Select, located near the Interstate 680 and Contra Costa Boulevard, near a vibrant downtown area, serves as a critical bellwether for the regional lodging market.
The Bay Area hotel sector has been plagued by plummeting property values, loan defaults, and foreclosures. Major hotels have faced the axe, including the Signia by Hilton in downtown San Jose, which was seized through foreclosure in May 2025. In July 2025, the Oakland Marriott City Center also fell victim to foreclosure due to financial struggles.
This downward trend isn’t isolated to smaller establishments. Iconic hotels in San Francisco have been caught in the financial crossfire, with the Huntington Hotel on Nob Hill seized by lenders in 2023. The Four Seasons at Embarcadero faces similar foreclosure threats, and the Hilton San Francisco Union Square has entered receivership after failing to make payments on a staggering $725 million loan.
The implications of these trends are profound. The hotel industry not only impacts local economies but also the livelihoods of countless employees who depend on stable hospitality jobs. With foreclosures and declining property values becoming the norm, the future of the Bay Area’s lodging market hangs in the balance.
What happens next? Industry experts will be closely monitoring further developments as occupancy rates improve but financial foundations continue to weaken. The immediate future for hotel properties in the Bay Area is uncertain, and stakeholders are on high alert.
Stay tuned for more updates as this developing story unfolds, and share your thoughts on the impact of these changes on our communities.
