A 24-room boutique hotel in downtown Santa Barbara has changed hands, underscoring continued investor interest in the city’s tightly held hospitality market.
Palihouse Santa Barbara, located at 915 Garden Street in the Historic Presidio neighborhood, was acquired by Eight Form for $16.75 million, or roughly $698,000 per room. The acquisition was financed with approximately $13.5 million in debt, representing about 80 percent of the purchase price.
The buyer was represented by Marc Schillinger of JLL Capital Markets in arranging the financing for the transaction.
The deal reflects ongoing demand for well-located boutique hotels in coastal California markets, where limited supply and strong leisure travel continue to support pricing and investor interest.