East Bay Hotels Auctioned Off at Bargain Prices

Hyatt House hotels in Pleasanton and Pleasant Hill sold for as little as $6,250 per room, signaling a continued slump in the Bay Area hotel market.

Apr. 1, 2026 at 3:41pm

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Two Hyatt House hotels in the East Bay were recently auctioned off at extremely low prices, with one in Pleasanton selling for just $800,000 ($6,250 per room) and another in Pleasant Hill fetching $3.5 million ($26,600 per room). These prices are a stark contrast to the $115,000 per room paid for the historic Hotel De Anza in San Jose in 2024, which was previously considered the low point for the Bay Area hotel market.

Why it matters

The collapse in hotel values throughout the Bay Area, along with weak prices for other commercial real estate assets, could lead to plummeting property tax revenues for local governments, forcing them to make budget cuts and layoffs. The deeply discounted hotels may also be able to undercut their competitors, pushing room prices even lower and perpetuating the downward cycle.

The details

The 142-room Hyatt House in Pleasant Hill and the 128-room Hyatt House in Pleasanton were both foreclosed in 2025 and recently auctioned off. The Pleasant Hill hotel sold for $3.5 million, while the Pleasanton hotel went for just $800,000. These prices are a fraction of what it would cost to build new hotels of similar size, which Atlas Hospitality Group estimates would be $300,000 to $400,000 per room.

  • The two Hyatt House hotels were foreclosed in 2025.
  • The hotels were auctioned off in late March 2026.

The players

Atlas Hospitality Group

A firm that tracks the California lodging market, led by president Alan Reay.

Hyatt House Pleasant Hill

A 142-room hotel in Pleasant Hill, California that was foreclosed and auctioned off for $3.5 million.

Hyatt House Pleasanton

A 128-room hotel in Pleasanton, California that was foreclosed and auctioned off for $800,000.

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What they’re saying

“These prices are shocking. You are looking at two hotels that would easily cost $300,000 to $400,000 a room to build today.”

— Alan Reay, President, Atlas Hospitality Group

“All of a sudden, you are going to find that property tax revenues for cities, counties, and school districts are going to be plummeting. Public agencies are going to be faced with slashing their budgets, cutting employees, raising taxes.”

— Alan Reay, President, Atlas Hospitality Group

“This looks like a downward cycle. This will impact all the other hotels that are in these markets.”

— Alan Reay, President, Atlas Hospitality Group

What’s next

Experts will be closely monitoring the impact of these deeply discounted hotel sales on the broader Bay Area hotel market and local government budgets in the coming months.

The takeaway

The fire-sale prices of these East Bay hotels highlight the continued struggles of the Bay Area's hotel industry, which could have far-reaching consequences for local governments and the broader commercial real estate market if the downward cycle persists.