SANTA CLARA — A Santa Clara hotel in a prominent location has been bought in a deal that suggests investors retain confidence in Silicon Valley even though the coronavirus has bludgeoned the region’s lodging market.

Paradigm Hotels Group has bought The Plaza Suites hotel in Santa Clara, which has a visible perch on Lakeside Drive next to U.S. Highway 101, according to Santa Clara County property records filed on May 5.

The affiliate that bought the hotel, Peninsular Investments, paid $72.5 million for the hotel, the public documents show.

“The recent sale of the Plaza Suites is an example of the strong buyer demand for quality hotels in “A” locations, in California,” said Alan Reay, president of Atlas Hospitality Group, which tracks the lodging market.

The hotel was being marketed for sale by CBRE, a commercial real estate firm. The CBRE brokers heading up the hotel marketing were Henry Bose, Alex Lee-Bull, Michael DiPrima, and Diana Sampson, according to the brochure.

“The Plaza Suites features newly refreshed 219 two-room guest suites, prime restaurant, recently expanded bar and lounge, unique outdoor deck, outdoor heated pool, lush landscaping, 24-hour fitness center, video game arcade, and flexible indoor/outdoor meeting spaces,” the CBRE brochure stated.

The purchase of the Santa Clara hotel arrives on the heels of a recent deal to buy the 130-room Montage Healdsburg hotel in Sonoma County’s Wine Country.

“The price of $72.5 million is in line with pricing we would have expected pre-COVID and that is a trend we are now seeing in other markets,” Reay said, referencing the Montage Healdsburg deal.

Bay Area hotels, including those in the Silicon Valley, have been jolted by the coronavirus and its effects on business and leisure travel. Hotels in San Francisco have been hammered even harder, according to experts.

Now, however, the just-completed purchase of The Plaza Suites provides the chance for a fresh start on the part of the new ownership group, which is headed by Ganendra Singh, who is a principal executive with Paradigm Hotels Group.

“A new owner has the opportunity to execute a number of different enhancements, including a conversion to a nationally recognized brand concept, establishing their own lifestyle experience,” CBRE said in the brochure.

 

 

Originally Appeared On: https://www.mercurynews.com/2021/05/06/plaza-suites-hotel-santa-clara-lands-buyer-despite-covid/