NEWARK — A Newark hotel was seized by its lender due to a delinquent loan, a foreclosure that highlights the wobbly values for the region’s hospitality market.
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The Hyatt Place Newark/Silicon Valley hotel at 5600 John Muir Dr. is now owned by an affiliate of lender State Bank of Texas following a foreclosure of an $18 million loan, documents filed on Oct. 17 with the Alameda County Recorder’s Office show.
The bank paid $25.8 million for the 112-room hotel, equal to the unpaid debt on the loan, which State Bank of Texas provided in 2019 to the hotel’s owner.
Shivam Real Estate had defaulted on the loan in June and lost the hotel through the foreclosure. Fremont residents Nimish Patel and Dipika Patel are among the principal executives and members of Shivam Real Estate, state business records show.
Financing setbacks such as loan defaults, foreclosures and a plunge in property values have begun to haunt a growing number of hotels in the Bay Area.
The largest hotels in Oakland and San Jose have been jolted by loan failures and foreclosures this year. Defaults have rocked several hotels in San Francisco as that lodging market falters.
The problems in the hotel market have become severe enough that they have undermined sales activity in the Bay Area and Southern California and have hobbled the pace of development for hotels throughout the state, according to a July report by Atlas Hospitality Group, which tracks the California lodging market.
An estimated 1,453 hotel rooms were under construction in the Bay Area during the first half of 2025, which represented a plunge of 46.7% from the 2,725 hotel rooms that were being built in the first half of 2024, Atlas Hospitality reported.
As for the Hyatt Place Newark, Atlas Hospitality Group has listed the hotel for sale on behalf of the lender, according to a marketing package being circulated in the real estate industry.
