Sacramento & the Capital Region · Sacramento County
Sacramento hotel & multifamily broker
Advisory for owners in California's capital market
As of 2026-08-03, 6 hotel listings were observed for sale in the Sacramento market, with published asking prices from $1,200,000 to $4,500,000. Request the full report
Sacramento's lodging demand doesn't behave like a coastal market. State government, the healthcare systems anchored around the medical centers, and a steady calendar of legislative and association business give the capital region a weekday base that most California metros can't match — and that changes how a hotel here should be underwritten, marketed, and sold.
Stephen Shekhar advises hotel and multifamily owners across the Sacramento region on valuation, positioning, and sale — bringing the same underwriting discipline he applies to institutional coastal assets to a market that rewards operators who understand its demand mix.
Underwriting the capital's demand base
Government, healthcare, and university-driven demand read differently in a T-12 than leisure-heavy markets. A valuation here should say so.
Exit strategy for long-hold owners
Many Sacramento hospitality assets are family-held. We structure quiet, competitive sale processes that respect an operating business.
Multifamily and conversion lens
Where a property's highest value isn't its current use, we underwrite the alternative — including hotel-to-housing conversion exits.
What’s moving the Sacramento market
Updated 2026-08-03 · every item sourced
Sacramento Poised for Long-Term Lodging Growth (HVS market report)
Approximately 36 hotels in some stage of development as of mid-year 2026 signals future supply pressure on existing owners. (2026-07-02 — source)
Sacramento tourism leaders announce GoldenSky festival will return, CIM doubles in size
Visit Sacramento cites more than 15 million visitors and almost $5 billion spending yearly; event calendar deepening for compression nights. (2026-06-03 — source)
Sacramento International Airport Sets New Records in 2025, Accelerates Growth and Expansion
Record 13,912,718 passengers in 2025, up two percent; $1.4 billion SMForward program supports airport-submarket lodging demand. (2026-01-26 — source)
Debt stress boosts California hotel deals (Atlas Hospitality 2025 year-end survey)
259 California sales, nearly $4.1 billion, median price per room fell 7.2% to $138,000; Atlas expects more lender-driven sales. (2026-02-05 — source)
Sacramento tourism hits growth stride; hotel room shortage looms
Local business press frames room supply as the binding constraint on tourism growth; full article is paywalled and unverified beyond headline. (2026-06-16 — source)
Signals
- Policy — AB 507 (Haney, 2025), signed October 10, 2025, effective July 1, 2026: adaptive reuse becomes a by-right, ministerial use in all zones, with affordability conditions. source
- Conversion — Per the same Sacramento County guide, SB 838 excludes projects designating any portion as hotel or other transient lodging from the housing development project definition. source
- Distress — Atlas president Alan Reay reports a definite uptick in hotel notices of default and expects more lender-related sales in first-half 2026, mostly independent and lower-chain-scale SBA borrowers. source
- Transaction — CoStar Sacramento hospitality report dated 12/27/2025: 13 properties traded over the prior 12 months for $174 million; 17 sale comps averaged $157K per room at 8.0% cap rate. source
- Demand — Same CoStar report: 12-month occupancy 63.9% (up 2.2% year-over-year), ADR $161, RevPAR $103, still trailing the pre-pandemic 73% occupancy benchmark. source
Observed on the market
Capital City Inn Sacramento Convention Center, 430 16th St
$4,500,000 asking · 33 keys/units
Highest published asking price observed; 17,511 SF; downtown near convention center source
Vince's Motel, 9515 Folsom Blvd
Price undisclosed · 75 keys/units
Largest key count observed; Price Upon Request; 27,000 SF source
Budget Inn, 3721 Watt Ave
$3,800,000 asking · 27 keys/units
11,400 SF economy asset; second-highest published ask observed source
Hotel Med Park, an Ascend Collection Hotel, 2356 Stockton Blvd
Price undisclosed · 32 keys/units
Only branded/flagged listing observed; Price Upon Request; near UC Davis Medical Center source
Third-party listings shown as market observations with attribution — not offerings of this practice.
Coverage note: Counted every result on LoopNet's 'Sacramento, CA hotels for sale' search page loaded 2026-08-03 (6 of 6 shown); LoopNet only — the 6 include one West Sacramento motel plus one multi-location Larkspur Landing portfolio; other marketplaces were not readable.
Conditions that move this market
as of 2026-08-03
Trepp CMBS delinquency rate increased 51 basis points to 7.86% in July 2026; lodging increased 13 basis points to 5.35%
Lodging credit is deteriorating again after June's improvement, which tightens refinancing terms and strengthens a case for selling now. source
California AB 507 (Adaptive Reuse) operative July 1, 2026: ministerial, CEQA-exempt approval for converting nonresidential buildings including hotels into residential or mixed use
Creates a statewide by-right path to convert hotels to housing, potentially adding a residential-value floor under underperforming assets. source
CoStar: U.S. hotel results for week ending 25 July 2026 — occupancy 72.5% (+1.3%), ADR $173.47 (+4.9%), RevPAR $125.72 (+6.3%)
Top-line trend is solidly positive and rate-driven, meaning current trailing revenue supports a stronger sale narrative today. source
Sacramento owner questions
How do you value a hotel in Sacramento?
We start from your actual operating statements — occupancy, ADR, RevPAR, and a trailing-12 P&L — then weigh the capital region's demand mix (government, healthcare, events) and comparable closed sales. You receive a written opinion of value with the assumptions shown, not a number in a vacuum.
Can you sell my property without publicly listing it?
Yes. Off-market and quietly marketed processes are common in hospitality, where public exposure can unsettle staff and franchise relationships. We match the process to your situation — from a targeted buyer outreach to a full marketed campaign.
I own a hotel but I'm considering a 1031 exchange. Where do I start?
Before anything is listed, we map the timeline: your basis, the exchange windows, and what replacement asset classes fit your goals. Stephen has advised on 1031-driven hotel and multifamily transactions since 2007.
Do you work with smaller independent properties, or only branded hotels?
Both. Branded select-service, independent, and boutique properties each have distinct buyer pools. The marketing plan changes; the underwriting discipline doesn't.
Talk through your Sacramento asset
A confidential conversation about your Sacramento hotel or multifamily property — and a preliminary view on value. Stephen Shekhar, eXp Commercial.
Prefer the phone? Call 323-841-0593