Granada Hotel rises on Monterey Road

Construction crews have been busy this summer pouring concrete, hammering rebar, digging holes and erecting walls for the Granada Hotel in the center of downtown Morgan Hill.

The hotel, under development by Frank Leal, is slated to be one of the largest commercial buildings in the city’s downtown. At four stories, the luxury hotel will house 60 guest rooms, conference space, a day spa, restaurant/market and flower shop.

The project is located on the southeast intersection of Monterey Road and First Street, next to the Granada Theater, which was also redeveloped by Leal.

The Granada Hotel site is at the former location of the Downtown Mall, which was purchased by the city’s Redevelopment Agency several years ago. After the state shut down the RDA, the city was able to continue to seek a developer for the style of mixed-use project that city officials have long envisioned for the downtown.

Through that process, Leal purchased the property from the city for about $1.1 million in October 2015. He purchased the Granada Theater, also formerly an RDA-owned property, the month prior for about $294,000.

The hotel and theater, as well as nearby new downtown developments, are touted by city officials as the kind of visitor-attracting, revenue-generating additions to the family-friendly downtown neighborhood.

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