On Sept. 1, the Los Gatos Lodge permanently closed its doors after being in business since 1958. The 8.8-acre lot, once a popular “garden motel,” sold for $78 million dollars to SummerHill Homes. Escrow closed on Oct. 15 for the sale by property owner Keet Nerhan. The land comes with a 155-unit multi-family residential development plan for the lot that was approved by Council in March. And yesterday, the company told the newspaper it would officially kick-off the construction of “Solana” on Tuesday.
Located at 50 Los Gatos-Saratoga Rd., Los Gatos Lodge had become quite emblematic of a particular period in Los Gatos’ history. Its reinvention represents the start of a new chapter for the community. The lot was originally put on the market in 2022 for $100 million.
SummerHill Homes purchased it, at the below-asking price, after using the new SB 330 housing law to win some concessions from the Town. Nerhan, who did not respond to a request for comment, purchased the hotel in 1996 from Alleghany Properties and attempted to sell it in 2019, according to media reports.
The Los Gatos Lodge didn’t receive major renovations until the 1970s. The renderings for the proposed development show that SummerHill would build 28 three-story buildings. Of the 155 residences, 26 homes would qualify as affordable housing, with 16 being sold to low-income and 10 for moderate income residents. Vice president of development for SummerHill, John Hickey, came to Council in March, and told the Los Gatan the build will be a valuable asset for the community.
Many residents are concerned the development, located at a northbound Highway 17 offramp and behind Los Gatos High School, will make traffic problems worse. Though some residents have voiced their support for the affordable housing, others point to how jammed-up the area gets in warmer months, thanks to beach-bound vehicles.
The Lodge served as an overnight rental property with 128 rooms. Others took up residence in the building. It’s unclear when demolition and construction might begin.
A flash from the past
Los Gatos High School grad Peter Chacona (Class of ‘68) went on to become an Emmy winner for the Los Angeles talk show he hosted, in the 90s, called “The Late Mr. Pete Show.” Now 75, Chacona looks back fondly on his time at the Lodge. “I am so happy my dad moved us there in 1956,” he said on Facebook.
(Courtesy of Peter Chacona)
“Over the years, I’ve collected quite a few old yearbooks and post cards off of eBay.” Chacona recently shared images of a Los Gatos Lodge pamphlet on social media that he ended up auctioning off.
One of his reminiscences is of the time—in the early-70s—when he and his friend, Bill Majeski (LGHS, Class of ‘70), went down on a Friday night and saw their math teacher Ms. Peloian. There she was, rocking out on the dance floor. At that moment, he realized that she was, in fact, human, too.
As the SB 330 and Builder’s Remedy tool gains more traction across California, more locations that were once nostalgic to town residents may soon face a remodel similar to the Los Gatos Lodge.
However, while SummerHill initially came in under the Builder’s Remedy program, in the end, the developer opted not to use that specific mechanism.
“This is an exciting milestone for SummerHill Homes and the Los Gatos community,” said Chris Neighbor, president and CEO of SummerHill Homes.
“Having closed on the property for $78 million in October, we are thrilled to officially break ground on November 4th, 2025, with homes going on sale Winter 2026. We can’t wait to bring this thoughtfully planned neighborhood to life.”
