CBRE Hotels solicits offers to acquire the fee-simple interest in the corporate-owned La Quinta Inn & Suites in Fremont, California. Located off Interstate 880 and close to Tesla Fremont Gigafactory, HPE, Seagate, Western Digital, Amazon Warehouse, and the Pacific Commons Shopping Center, the 148-room hotel receives business from a diverse population of both corporate and leisure segments.
Investment Highlights
- Corporate-Owned La Quinta Inn & Suites - Opportunity to acquire a corporateowned, 148-room, five-story, La Quinta Inn & Suites that is located off Interstate 880 in the southeast San Francisco Bay Area.
- Management Upside - The La Quinta will be delivered unencumbered of management. Due to the current operator’s national scale and substantial allocation for corporate overhead, this project presents significant potential upside for a more hands-on owner operator to drive significant value through improvements in operational efficiencies and rate management.
- Underperforming the Comp Set - The hotel is significantly underperforming its competitive set. In 2023, the hotel posted a 80.7 RevPAR index to the comp set, ranking 3 of 5 hotels. Given the limited new supply in the pipeline, the La Quinta will be able to increase its market positioning by capitalizing on the strong recovery of corporate, group, and leisure demand in the market.
- PIP Cap - Per Section O of the Wyndham Franchise Agreement, there is a favorable PIP cap in place that is transferable to the Buyer. Following this capped PIP, there is then a 6 year PIP holiday.
- Convenient Location - Located off Interstate 880 and just 11 miles from Norman Y. Mineta San Jose International Airport, the property provides convenient access to an array of key hotel demand generators, including Tesla Fremont Gigafactory, HPE, Seagate, Western Digital, Amazon Warehouse, the Pacific Commons Shopping Center, Mission Peak and Mission San Jose.
- Fremont - “Hardware Side of the Bay” - Fremont is known as the “hardware side of the Bay.” With over 900 advanced manufacturing companies based in Fremont, advanced manufacturing accounts for one in every four jobs in the city. Additionally, Fremont has the largest industrial real estate inventory in the region, providing highly sought after large-format space for the Valley’s most innovative companies.
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