On March 2, Peregrine Hospitality, a hotel company with a $2.5 billion portfolio, announced it had acquired Toll House Hotel in Los Gatos, as well as The Lodge at Tiburon—facilities that serve what’s known in the business as “drive-to-leisure” markets.
“These are both exceptionally well-located hotels that align with our strategy of creating enhanced guest experiences while delivering long-term asset value,” said Peregrine Hospitality CEO Greg Kennealey in a release. “Both Tiburon and Los Gatos are high–demand markets that attract leisure and corporate travelers year-round.”
The 115-room Toll House property has 6,300 square feet of meeting space, a fitness and business center, and dining options.
It was renovated in 2021 with a Craftsman-inspired design.
The company’s press release mentions plenty of positives about investing in Los Gatos: scenic surroundings, Old Town, unique shops, restaurants, historic sites and the New Museum Los Gatos (NUMU)—among other highlights.
But according to The Press Democrat, before the Toll House Hotel was purchased via swift foreclosure, it saw a decline of at least 31% in value since 2019 (when a Procaccianti affiliate shelled out $43.5 million for it).
In 2022, the Los Gatan covered an effort by the hotel to drum up business by opening a high-end restaurant called Due Dieci Cucina Italiana.
That was part of a rebranding after the pandemic.
The restaurant got good reviews, but didn’t last.
Then, the hotel opened Los Gatos Tavern with a menu featuring wings, calamari and burgers.
Los Gatos Council members have frequently cited the soft rebound from the pandemic in the hospitality sector that never quite seems to gather the steam they’d like to see.
