KSL Capital Partners Buys Two Bay Area Hotels for $57.6M Through Foreclosure

Denver-based hospitality investor KSL Capital Partners acquired two four-star boutique hotels in the San Francisco Bay Area through foreclosure proceedings from Procaccianti Companies for a combined $57.6 million - approximately $20 million less than the $77.5 million Procaccianti paid for the properties in 2019. The two hotels are the 115-room Toll House Hotel in Los Gatos (Santa Clara County) and the 102-room Lodge at Tiburon in Tiburon (Marin County). KSL paid approximately $30 million for the Toll House Hotel and up to $27.6 million for the Lodge at Tiburon. - KSL Capital Partners: Denver-based private equity firm specializing in travel and leisure real estate. One of the leading hospitality-focused investors in the U.S. - Procaccianti Companies: Rhode Island-based hotel owner and developer; lost both properties through foreclosure, realizing a substantial loss on its 2019 acquisition. Deal closed through foreclosure proceedings; KSL acquired at the foreclosure price.