Quick Telecast
Expect News First

Motel 6 lodging properties in Bay Area land on the sales block

0 46



SAN JOSE — A private equity firm’s quest to unload big chunks of its lodging portfolio has triggered the sales of multiple Motel 6 hotels in the South Bay, a review of public documents and industry reports show.

Buyers have paid a combined $32.5 million for the three hotels, according to deeds filed with the Santa Clara County Recorder’s Office and information posted by MSCI Real Capital Analytics.

The recently bought hotels include Motel 6 properties in San Jose, Santa Clara and Gilroy.

The seller in all three instances is a hotel affiliate controlled by private equity firm Blackstone. New York City-based Blackstone is attempting to unload a large portion of its Motel 6 lodging portfolio.

“Blackstone is attempting to sell off a lot of their Motel 6 properties,” said Alan Reay, president of Irvine-based Atlas Hospitality Group, which tracks the California lodging market.

Budget hotel brands have tended to perform better than full-service hotels that are geared toward business travelers and convention events in the wake of the economic woes that the coronavirus spawned.

But it’s also possible that budget hotels that still require some levels of staffing aren’t viewed as being as profitable as other hotels that generate much more revenue with modest levels of employees to operate them.

“With budget hotels, labor costs will be a higher percentage of their revenue,” Reay said.

Among the recent deals involving Motel 6 properties in the Bay Area that were sold by the Blackstone affiliate:

— Motel 6 at 3208 El Camino Real in Santa Clara, 100 rooms, bought for $13.5 million on July 7.

— Motel 6 at 6110 Monterey Road in Gilroy, 127 rooms, bought for $10.5 million in June.

— Motel 6 at 2081 N. First St. in north San Jose, 76 rooms, bought for $8.5 million on June 15. The hotel is about a block away from a huge tech campus that Google leased a few years ago.

In 2012, Blackstone bought G6 Hospitality, which launched the Motel 6 chain in 1962 with a hotel in Santa Barbara that offered stays for $6 a night. The Blackstone purchase of G6 Hospitality included more than 1,000 Motel 6 and Studio 6 hotels. The Studio 6 hotels are an extended-stay brand.



SAN JOSE — A private equity firm’s quest to unload big chunks of its lodging portfolio has triggered the sales of multiple Motel 6 hotels in the South Bay, a review of public documents and industry reports show.

Buyers have paid a combined $32.5 million for the three hotels, according to deeds filed with the Santa Clara County Recorder’s Office and information posted by MSCI Real Capital Analytics.

The recently bought hotels include Motel 6 properties in San Jose, Santa Clara and Gilroy.

The seller in all three instances is a hotel affiliate controlled by private equity firm Blackstone. New York City-based Blackstone is attempting to unload a large portion of its Motel 6 lodging portfolio.

“Blackstone is attempting to sell off a lot of their Motel 6 properties,” said Alan Reay, president of Irvine-based Atlas Hospitality Group, which tracks the California lodging market.

Budget hotel brands have tended to perform better than full-service hotels that are geared toward business travelers and convention events in the wake of the economic woes that the coronavirus spawned.

But it’s also possible that budget hotels that still require some levels of staffing aren’t viewed as being as profitable as other hotels that generate much more revenue with modest levels of employees to operate them.

“With budget hotels, labor costs will be a higher percentage of their revenue,” Reay said.

Among the recent deals involving Motel 6 properties in the Bay Area that were sold by the Blackstone affiliate:

— Motel 6 at 3208 El Camino Real in Santa Clara, 100 rooms, bought for $13.5 million on July 7.

— Motel 6 at 6110 Monterey Road in Gilroy, 127 rooms, bought for $10.5 million in June.

— Motel 6 at 2081 N. First St. in north San Jose, 76 rooms, bought for $8.5 million on June 15. The hotel is about a block away from a huge tech campus that Google leased a few years ago.

In 2012, Blackstone bought G6 Hospitality, which launched the Motel 6 chain in 1962 with a hotel in Santa Barbara that offered stays for $6 a night. The Blackstone purchase of G6 Hospitality included more than 1,000 Motel 6 and Studio 6 hotels. The Studio 6 hotels are an extended-stay brand.

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Quick Telecast is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment
buy kamagra buy kamagra online
Ads Blocker Image Powered by Code Help Pro

Ads Blocker Detected!!!

We have detected that you are using extensions to block ads. Please support us by disabling these ads blocker.

Powered By
Best Wordpress Adblock Detecting Plugin | CHP Adblock