OPINION: Milpitas hotel bought by California lodging group

MILPITAS - The Element hotel at 521 Alder Dr. in Milpitas was bought for $46.2 million by an affiliate of San Diego-based Pacifica Host Hotels, a grant deed filed in Santa Clara County on July 15 shows.

The new ownership group said it is involved with 45-plus boutique, lifestyle and branded hotels in the United States.

"We operate a large chain of hotels in some of the best locations across the nation," the company states on its website. "We have a large footprint across the West Coast, Texas, and Florida, as well as Mexico."

The deal for the 194-room hotel offers hopeful signs for the reeling hospitality sector in the Bay Area.

Bought at a price that equated to $237,900 a room, the cost was considerably higher than the $109,243 median price for hotels sold in Northern California during 2025, as reported by Atlas Hospitality Group.

The sale price was 1.7% above its assessed value of $45.6 million in January. Assessed values are one of multiple metrics to measure how much a property is worth.

A plunge or flattening in hotel values could be starting to entice investors.

A 128-room Hyatt House hotel in Pleasanton was bought for $800,000, or just $6,250 a room. A Hyatt House hotel in Pleasant Hill was purchased for $3.3 million, or $23,200 a room. Both were acquired in June.

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