{"id":5597,"date":"2026-07-27T17:39:20","date_gmt":"2026-07-27T17:39:20","guid":{"rendered":"https:\/\/nextcitydigest.com\/?p=5597"},"modified":"2026-07-27T17:39:20","modified_gmt":"2026-07-27T17:39:20","slug":"14-north-bay-hotel-projects-advance-despite-market-headwinds","status":"publish","type":"post","link":"https:\/\/nextcitydigest.com\/?p=5597","title":{"rendered":"14 North Bay hotel projects advance despite market headwinds"},"content":{"rendered":"<div>\n<div>\n<p>North Bay hotel construction continued in Napa, Sonoma and Solano counties, as building of lodging increased across California yet projects in development declined, according to a new report.<\/p>\n<p>Read more <a href=\"https:\/\/nextcitydigest.com\/?p=5595\">Pipe bomb suspect identified by Santa Cruz County Sheriff\u2019s Office<\/a><\/p>\n<p>In those three local counties, 14 hotel projects with 1,647 rooms were under construction at midyear, according to Atlas Hospitality Group\u2019s midyear California Hotel Development Survey. Meanwhile, hotel openings across the Golden State fell sharply during the first half of 2026, even as construction activity increased.<\/p>\n<p><strong>RELATED:\u00a0Bay Area lodging woes persist as San Jose hotel suffers loan failure<\/strong><\/p>\n<p>Atlas President Alan Reay cited higher construction and labor expenses, lower values for existing hotels and limited access to construction financing as major barriers to new development.<\/p>\n<p>\u201cHotel lenders are being very cautious, many have pulled out of the market and most do not want to touch hotel construction loans,\u201d Reay said.<\/p>\n<p>He said lower hotel values also are shifting investor interest toward existing properties that can be purchased below replacement cost and with less development risk.<\/p>\n<p>The pressure extends to owners of operating hotels, Reay said.<\/p>\n<p>\u201cWe have seen an increase in hotel foreclosures and bankruptcies, and we expect this to continue through the rest of 2026 and into next year,\u201d he said.<\/p>\n<div>\n<\/div>\n<h4>Local hotels in distress<\/h4>\n<p>The North Bay has seen a few troubled properties and ventures so far this year.<\/p>\n<p>In March, Blackstone Inc. purchased the 135-room Stanly Ranch resort near Napa out of foreclosure for $195 million, after the developer of the 700-acre property defaulted on a $220 million loan, Hotel Dive reported. In St. Helena, the Alila Napa Valley resort in St. Helena was hit with a $94.2 million default notice in May after missing payments, according to the Napa Valley Register.<\/p>\n<p>Then in June, Windsor Hospitality Group LLC filed for Chapter 11 reorganization as it fell behind on payments for its 100-room Holiday Inn Windsor Wine Country hotel in the Sonoma County town, The Press Democrat reported. The owners also are looking to sell Hotel Vinea in Healdsburg.<\/p>\n<p>Reay said owners refinancing maturing loans face higher interest rates and, typically, lower appraised values, forcing them to contribute additional money. Many do not have the funds, increasing the risk of default or foreclosure.<\/p>\n<div>\n<\/div>\n<p>\u201cWe are also seeing hotels re-selling at substantial discounts to prior sales, which is applying even more downward pressure on current values,\u201d Reay said.<\/p>\n<p>Statewide, new hotel openings plunged by 42% compared to the same period last year, even as the number of hotels under construction climbed, the Atlas survey said. 2025 saw a rise in openings statewide, the Journal reported on Atlas\u2019 year-end report.<\/p>\n<p>Statewide, 21 hotels with 1,988 rooms opened from January through June, down 42% from 36 hotels in the same period of 2025. The number of rooms delivered fell 63% from 5,369. The largest new hotel was the 148-room Element Hotel Mission Valley in San Diego.<\/p>\n<p>Read more <a href=\"https:\/\/nextcitydigest.com\/?p=5593\">Lightning kills teen hiker atop 14,000-foot peak in Colorado<\/a><\/p>\n<p>In the North Bay, only two locations opened in the first half. The new Home2 Suites hotel at 3701 Main St. brought 107 rooms to American Canyon. And Duchamp Healdsburg\u2019s two-year rebuild at 421 Foss St. had a net addition of 14 rooms.<\/p>\n<h4>What\u2019s being built<\/h4>\n<p>But construction continues in the North Bay and statewide.<\/p>\n<p>Sonoma County led the North Bay in rooms under construction, with five hotels totaling 738 rooms. The two largest projects are a 200-room addition at Graton Resort in Rohnert Park and the 165-room Hyatt Place Santa Rosa. Also underway is the 100-room hotel that\u2019s part of the transformation of River Rock Casino near Geyserville into the Caesars Republic Sonoma County resort, set for a summer 2027 opening.<\/p>\n<p>Napa County had the most projects, with seven hotels and 695 rooms under construction. Its two largest developments are the 161-room Kohl\u2019s Plaza redevelopment in Napa and the 129-room Rosewood Calistoga.<\/p>\n<p>Solano County had two hotels totaling 214 rooms under construction. Both are 107-room Home2 Suites projects, one in Fairfield and the other in Vacaville.<\/p>\n<p>Lake, Marin and Mendocino counties had no hotels under construction at midyear.<\/p>\n<h4>What\u2019s on the drawing board<\/h4>\n<p>The North Bay planning pipeline was substantially larger, led by Napa County with 30 hotels and 2,950 rooms and Sonoma County with 28 hotels and 2,274 rooms. Lake County had nine planned hotels totaling 1,221 rooms, Solano County had seven totaling 560 rooms, Marin County had three totaling 293 rooms, and Mendocino County had three totaling 140 rooms.<\/p>\n<p>Meanwhile, the number of hotels under construction rose 16% to 115, representing 14,126 rooms. At midyear 2025, 99 hotels with 12,213 rooms were under construction.<\/p>\n<p>Northern California had 50 hotels with 6,074 rooms under construction, up from 39 hotels and 5,218 rooms a year earlier. Southern California had 65 hotels under construction, up from 60.<\/p>\n<p>The statewide planning pipeline contracted for the fourth consecutive period. Projects in planning fell 6% to 1,106 hotels with 139,274 rooms, compared with 1,180 hotels and 147,648 rooms at midyear 2025.<\/p>\n<p>Los Angeles County remained California\u2019s most active hotel market, with 19 hotels and 2,311 rooms under construction and 136 hotels with 20,454 rooms in planning. San Diego County had 13 hotels with 2,211 rooms under construction and 86 hotels with 14,638 rooms in planning.<\/p>\n<p><em>Jeff Quackenbush joined North Bay Business Journal in May 1999. Reach him at jeff@nbbj.news or 707-521-4256.<\/em><\/p>\n<p>Read more <a href=\"https:\/\/nextcitydigest.com\/?p=5591\">Where are California bargains for renters seeking a house?<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Napa, Sonoma and Solano counties keep adding hotel projects while California openings drop 42% and lenders grow more cautious, according to new research.<\/p>\n","protected":false},"author":1,"featured_media":5596,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-5597","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>14 North Bay hotel projects advance despite market headwinds - Next City Digest<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nextcitydigest.com\/?p=5597\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"14 North Bay hotel projects advance despite market headwinds - 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