Chicago-based Singerman Real Estate, operating through an affiliate, has purchased the 357-room Fremont Marriott Silicon Valley for $53 million. The seller, Texas-based Ashford Hospitality Trust, offloaded the 10-story property located at 46100 Landing Parkway more than ten years after acquiring it in 2014 for $50 million an amount equivalent to roughly $70.8 million when adjusted for inflation.
Per-Key Valuation and Low Market Pricing:
The transaction settled at approximately $148,500 per key, which positions the sale 7.3 percent higher than the median price per room for hotels sold across California last year, based on Atlas Hospitality Group data cited by the Mercury News. However, this per-room figure remains marginally lower than California’s median of $149,200 per key from two years prior. Atlas Hospitality President Alan Reay noted to the publication that lodging prices have reached historic lows unseen even during past downturns like the recession, making properties like the Fremont Marriott prime examples of assets experiencing deep discounts. Furthermore, the hotel’s per-room price sits 85 percent below estimated replacement costs, with Reay calculating that building a replacement room today would cost upward of $1 million.
Capital Pressures and Broader Regional Distress:
Reay explained that Ashford has faced considerable pressure to free up capital, noting that the firm is also attempting to divest another Bay Area asset, the Hilton Santa Cruz/Scotts Valley in Santa Cruz. Unlike a wave of distressed East Bay hotel sales in recent years plagued by loan defaults, bankruptcies, and foreclosures, the Fremont Marriott sale was not distressed. Recent market distress includes last year’s seizure of a 276-room dual-brand hotel at 1431 Jefferson Street in downtown Oakland via a deed-in-lieu of foreclosure on a $112 million loan, as well as the lender seizure of Oakland’s largest hotel the 500-room Oakland Marriott City Center in a $70.2 million foreclosure that finalized at $140,400 per room.
