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.
Originally constructed in the 1920s as the Santa Barbara School of the Arts, the roughly 33,000-square-foot property was reimagined as Palihouse Santa Barbara in 2021. The building’s Spanish Colonial Revival architecture, centered around a landscaped courtyard and pool, is characteristic of the surrounding Presidio neighborhood.
The hotel’s 24 rooms and suites are arranged around the courtyard and include private outdoor spaces, fireplaces, and residential-style layouts. An on-site café and bar serves both guests and local visitors throughout the day.
The acquisition adds to a growing list of recent boutique hospitality transactions in Santa Barbara, where high barriers to entry and limited new development continue to shape the market.
For more information, contact Marc.Schillinger@jll.com.
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