An investment fund has purchased the 421-room luxury Sofitel San Francisco Bay for $154.5 million, according to the Daily Journal.
CBRE Global Investors is the new owner and plans to continue renovating the hotel that has 20,000 square feet of meeting space. The property was bought from Prudential Real Estate Investors, which purchased the property in 2012 for a reported $92.5 million. Prudential reportedly spent about $9 million renovating the eight-story hotel before it sold.
CBRE’s John Sauter said the plan is to renovate about 100 of the rooms and modify the food-and-beverage operation.
The purchase price amounts to about $366,000 per room.
The Sofitel San Francisco Bay on Twin Dolphin Drive was built in 1987. It has hosted such luminaries as Mitt Romney, who stayed there with a large entourage while running for president in 2012. His presence actually drew a group of protesters to the hotel.
Among the four-star hotel’s 421 rooms, 42 of them are suites.
Although plans don’t include any major remodeling, some of the rooms and suites may be reconfigured, Sauter said Thursday.
The Sofitel is “truly an upscale hotel in the heart of Silicon Valley,” Sauter said.
“We feel bullish about the tech industry and the Silicon Valley market,” he said.
The Sofitel is on the “higher side” of the market, he said.
“We got it for a good buy,” he said.
CBRE also owns the Marriott hotel in downtown San Jose. The company also owns some office buildings in the area.
The Sofitel’s proximity to the San Francisco International Airport and companies such as Oracle, Facebook and Electronic Arts makes it a valuable property, company officials said.
San Francisco is a focus market for the CBRE Global Investors Fund.
“San Francisco has been one of the best-performing metro economies in the country in this recovery,” Vance Maddocks, president of CBRE Strategic Partners U.S. wrote in a statement. “Furthermore, Bay Area hotels have performed well since the recession, and the Sofitel is a premier asset in a top-tier market that has a limited supply of full-service hotels in the area.”