Former Marriott Hotel to become apartments, townhomes: New proposal would bring 234 residential units on 10-acre site

The hotel — located along the intersection of South Amphlett Boulevard and Concar Drive — boasted more than 400 hotel rooms and the Craft/Code Kitchen and bar.

The recent proposal calls for 159 three-story townhome style units, as well as a six-story multifamily development with 75 apartment units, 57 of which would be designated for low-income households.

Oracle, previously headquartered in Redwood City and now based in Austin, Texas, purchased the property in 2016 for roughly $130 million, using the hotel not just as an investment asset but leveraging its approximately 32,000 square feet of meeting space to conduct corporate events and employee trainings.

Since its closure, the city has rezoned several parts of the city, which allowed development at the site to reach up to five to eight stories.

The proposal adds to the city’s robust development pipeline, which has soared since the passage of Measure T, a 2024 measure that increased height and density limits in several parts of the city.

The proposal comes not long after another development proposal at the adjacent site at 1650 S. Amphlett Blvd., which would demolish the existing office buildings to make room for 64 single-family homes, 192 condominiums and 371 parking stalls.

Councilmember Rob Newsom, who represents the district where the site is located, said the proposal is bittersweet. On one hand, the residential units are in high demand, especially for-sale units like townhomes, he said, however, the loss of transient occupancy tax revenue is a major hit to the city’s coffers.

“It’s a mixed bag. I’m excited to see housing getting built, but there is an unintended consequence … which costs the city millions in revenue,” Newsom said adding that he had originally hoped the site would be a mixed-use development with both a hotel and residential units.

The city received about $2.76 million in hotel tax revenue from the Marriott in fiscal year 2023, the last full year it received the funds before the closure. Just a couple weeks ago, the city announced a projected $16 million general fund deficit next fiscal year, which begins in July.

“It’s great from a growth perspective, but losing the hotel was a big hit for the city,” Newsom said.