East Bay hotel is foreclosed as Bay Area hospitality industry totters

LIVERMORE — A Livermore hotel has been foreclosed by its lender in a sign that the Bay Area hospitality market continues to stagger from a series of jolts unleashed by slumping prices and delinquent loans.

The Super 8 by Wyndham hotel, a 102-unit lodging property at 4673 Lassen Rd., landed in financial difficulty after its owner defaulted in March 2025 on a $7.7 million loan provided by State Bank of Texas.

State Bank of Texas has now foreclosed on the loan to satisfy the financing delinquency, documents filed with the Alameda County Recorder’s Office show.

The prior owner of the hotel, an affiliate headed up by Texas-based business executive Jagmohan Dhillon, filed for bankruptcy in May 2025 in connection with the Livermore hotel, court records show.

Ultimately, the bankruptcy only delayed the foreclosure.

The foreclosure is just one component of what has become a brutal landscape for the lodging market in the Bay Area.

Hotel construction has plunged, a nosedive that was unleashed by stubborn problems for hotel financing and elevated construction costs, Atlas Hospitality Group reported recently.

An estimated 15 hotels with an aggregate of 1,610 rooms were under construction in the Bay Area during 2025, representing a sharp decline from 2024, according to the report. An estimated 21 hotels with an aggregate total of 2,452 rooms were under construction in 2024, the report showed.

The number of hotels under construction in the Bay Area fell 28.6% in 2025 compared with 2024, while the number of hotel rooms under construction in the region dropped 34.3% over the one-year period, Atlas Hospitality figures show.