Work begins on downtown hotel project

Council approved project in 2015

MOVING FORWARD The Granada Hotel project broke ground recently in downtown Morgan Hill. Photo: Erik Chalhoub

After nearly four years in the making, crews broke ground on the Granada Hotel project in downtown Morgan Hill on April 15.

The hotel is expected to open in fall 2020, according to owner Léal Vineyards Incorporated’s website.

In September 2015, the Morgan Hill City Council agreed to sell the one-acre piece of property at 17490 Monterey Road to Frank Léal, of Léal Vineyards of Hollister, for about $1.1 million. After the Downtown Mall building on the property was demolished, Léal entered into a contract with Oakland-based architecture firm KTGY to construct the 64,940-square-foot, four-story, 60-room multi-use luxury hotel.

The Granada Hotel will feature a restaurant, bar, retail space and banquet hall, along with the hotel’s lobby, guest rooms, spa and other amenities.

Once the hotel is up and running, city staff have previously said they anticipate general fund revenues of about $294,000 annually, in the form of sales, property and hotel taxes.

The hotel will be constructed adjacent to the Granada Theater, also purchased by Léal in 2015, which has since been remodeled as a venue for live entertainment and private events.

Mayor Rich Constantine said he was “relieved” that the hotel project was coming to fruition.

“The boutique hotel is really the last jewel and the crown of our downtown,” he said. “Once it’s completed, I think it will be another catalyst for more businesses coming to downtown.”

Constantine said the project represents a continued investment in downtown from developers, citing the recent opening of Opa! and Tac-oh! restaurants at the corner of Monterey and Third streets.

“There was a fear that when those restaurants came in, that it would take business away,” Constantine said. “The exact opposite happened. I spoke to business owners, and they said it has actually brought more people to other restaurants.”

An official groundbreaking ceremony for the Granada Hotel will be scheduled at a later date.

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