An extended-stay hotel proposed a few years ago has broken ground in Garden Grove, and could open next year after getting financing.
A 124-room Hilton Home2 Suites recently began construction on the site of a former used car lot at 13650 Harbor Blvd.
Garden Grove Hotel LLC, an affiliate of Harvey, La.-based BN Group, paid $2.8 million in 2016 for the 1.5-acre site just south of the Garden Grove (22) Freeway.
The developer, which has done most of its business on the Gulf Coast, is investing approximately $21 million in the new hotel, which was financed in part by a $15.5 million loan recently arranged by CBRE Group Inc.
The hotel is BN Group’s first in Southern California, according to CBRE, which announced the funding deal late last month.
“This development will enable the sponsorship group to expand its hotel portfolio beyond the southeastern United States,” CBRE’s Doug Birrell said. “We are excited to facilitate the group’s entrance into the dynamic Southern California hospitality sector.”
A second Home2 Suites is in the works a few miles away in Anaheim.
Irvine developer R.D. Olson Construction is building a 223-room dual brand hotel at the site of a former Quality Inn.
The two hotels, which share a lobby, include a Home2 Suites and a Hilton Garden Inn and will wrap construction in late 2020. R.D. Olson is building the project on behalf of Anaheim-based Nara Investments.
