OAKLAND — An Oakland hotel near the city’s international airport has been bought in a deal that points to continued weakness in the Bay Area hospitality market.
The Courtyard by Marriott Oakland Airport hotel was purchased for $12.5 million, documents filed on Dec. 26 with the Alameda County Recorder’s Office show. Harprit Dhillon, a business executive based in the Sacramento County city of Elk Grove, headed up the affiliated buying group that bought the 156-room hotel at 320 Hegenberger Road in Oakland, according to state public documents.
“This is a great price for this hotel,” said Alan Reay, president of Atlas Hospitality Group, which tracks the California lodging market. “The buyer will be able to own this as a long-term investment.”
The $12.5 million price works out to roughly $80,100 a room. That’s a huge decline from the property’s assessed value and its per-room value derived from recent re-financings of the hotel, which is near Oakland San Francisco Bay Airport.
In 2016, the hotel was refinanced for $43.9 million, and in 2018, the hospitality hub was refinanced for $32.1 million, according to Real Capital Analytics.
The 2016 refinance worked out to $281,200 a room, while the 2018 financing revamp equated to $205,500 a room.
The new purchase price is 63% below the assessed value of $33.5 million in January 2025 and represents roughly the same nosedive in value when compared with the refinancing in 2018.
Plus, a developer would have to pay $200,000 to $250,000 a room to build a hotel that’s identical to the just-bought Courtyard by Marriott Oakland Airport, Reay estimated.
The hotel’s previous owner, an affiliate of Ashford Hospitality Trust, defaulted on the hotel’s loan in 2023 when the financing matured and became payable in full. A receiver was appointed in 2024 to take control of the property and prepare it for a sale.
“The new owner may be thinking the market will improve over the next five to 10 years,” Reay said. “If the market recovers, they can have a big payoff on their purchase.”
