LOS GATOS — The Toll House Hotel in Los Gatos was bought by a lodging group from Colorado through a swift foreclosure proceeding, evidence that the Bay Area hospitality sector continues to wobble.
The transaction suggests that the hotel is worth far less now than the price the seller paid in 2019, a review of Santa Clara County property documents shows.
Denver-based KSL Capital Partners, whose units include Peregrine Hospitality, took ownership of the hotel through a deed in lieu of foreclosure, which is a speedy process to enable a lender to take ownership of the property.
The unpaid debt was $30 million at the time of the foreclosure, according to documents filed on March 5 with the Santa Clara County Recorder’s Office.
The seller in the foreclosure proceeding was an affiliate of Rhode Island-based Procaccianti Cos. In 2019, the firm paid $43.5 million for the Toll House Hotel, county property documents show…