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

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

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San Jose — The quest for a private equity firm to unload most of its accommodation portfolio has triggered the sale of at least four motel 6 hotels in South Bay.

Buyers paid a total of $ 40.3 million to the three hotels, according to a certificate filed with the Santa Clara County Records Office.

Recently purchased hotels include motel 6 hotels in San Jose, Santa Clara, Gilroy and Campbell.

The sellers in all four cases were hotel affiliates managed by New York City-based private equity firm Blackstone.

“Blackstone is trying to sell many of its motel 6 properties,” said Alan Ray, president of Irvine-based Atlas Hospitality Group, which tracks the California accommodation market.

Budget hotel brands tend to outperform full-service hotels for business travelers and convention events that have been financially hit by coronavirus-related shutdowns and restrictions.

However, budget hotels that still require a certain amount of staff may not be considered as profitable as other hotels that generate far more revenue by running with a modest level of employees.

“At budget hotels, labor costs make up a large percentage of revenue,” says Reay.

Recent deals on properties at Motel 6 in the Bay Area sold by Blackstone affiliates include:

— Motel 6,100 rooms at 3208 El Camino Real in Santa Clara, purchased on July 7th for $ 13.5 million. The purchaser was a Texas-based group led by Jagmo Handyron, Principal Executive of DMC Hotel and Dillon Management.

— Motel 6,127 rooms on Gilroy’s 6110 Monterey Road, purchased June 23 for $ 10.5 million. Buyers were Jayesh Patel and Hemaben Patel based in the Canoga Park area of ​​Los Angeles.

— Motel 6,76 rooms at 2081 N. First St. in North San Jose, purchased on June 15th for $ 8.5 million. The hotel is about a block from the huge tech campus that Google leased a few years ago. The purchaser was Temple Santa Nella, a group led by Ravi Patel, based in the city of Gustine, Merced County.

— Motel 6, 19 rooms at 1240 Camden Ave. in Campbell, purchased May 20 for $ 7.8 million. The purchaser is San Francisco-based Ambika Enterprises, headed by Devendra Patel.

In 2012, Blackstone acquired G6 Hospitality. G6 Hospitality launched the Motel 6 Chain in 1962, offering a $ 6 / night stay at a hotel in Santa Barbara. The purchase included over 1,000 motel 6 and studio 6 hotels. Studio 6 Hotel is a long-stay brand.

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