Oakland's Trendy Moxy Hotel to Shut Down After Less Than Five Years
The Moxy Hotel, a stylish and affordable Marriott brand property at 2225 Telegraph Avenue in Oakland, is reportedly set to close its doors permanently, marking a premature end to what was envisioned as a catalyst for revitalising the city's long-troubled downtown district.
A Premature Closure Amid Economic and Social Challenges
According to reports, the hotel has already shuttered its vibrant, youth-oriented bar and ceased accepting any new reservations, with its website displaying all future dates as unavailable alongside a terse message stating, 'Not available for check-in.' The closure comes less than five years after the hotel's high-profile opening in 2021, which was intended to signal a new beginning for Oakland, an area historically synonymous with violent crime, vagrancy, and contentious progressive politics.
Louis Thibault, market intelligence manager at Avison Young, described the situation to the San Francisco Standard, stating the hotel was 'a victim of wrong place and wrong time, considering how much positive momentum Oakland had prior to the pandemic.' The city has struggled to recover from a compounded epidemic of crime and homelessness, issues significantly exacerbated by the COVID-19 pandemic, creating a harsh environment for hospitality businesses.
Financial Troubles and Management Changes
The 172-room hotel began showing clear signs of financial distress last August when its operators defaulted on a substantial $35 million loan from Acore Capital Mortgage. In a bid to stabilise operations, Michelle Russo, founder and CEO of hotelAVE, assumed management of the property in September, focusing on guiding it toward upscale sales opportunities.
However, financial pressures persisted. The outlet reported that the hotel failed to pay nearly $102,000 in property taxes due in November, resulting in a lien being issued against it. The quiet freezing of all bookings further fuelled local speculation about its imminent fate.
Oakland's Broader Context: Crime and Tourism
Oakland's national reputation, particularly concerning crime, is cited as a major factor likely depressing tourism. Official city data indicates a decline in tourism spending, dropping from $617 million in 2023 to $583 million in 2024. A stark August report from US News & World Report, utilising FBI data on murder and property crime rates, ranked Oakland as the second most dangerous place in the United States.
Illustrating the scale of property crime, city statistics for 2023 revealed that one in every thirty Oakland residents had their car stolen, amounting to approximately 15,000 vehicles pilfered that year alone.
Political Response and Uncertain Future
The hotel's struggles unfolded against a backdrop of political transition. Mayor Barbara Lee, who succeeded the previous administration, is attempting to address the chaos attributed to her predecessor, Sheng Thao, and former district attorney Pamela Price. While Mayor Lee's office has pointed to recent progress, citing a 28 percent decrease in violent crime and a 31 percent overall drop in crime, alongside strengthened violence prevention and ceasefire programmes, these efforts were not enough to save the Moxy Hotel in time.
The exact number of employees affected by the closure remains unknown. A former Moxy staffer, speaking anonymously, told the outlet that the shutdown 'comes as no surprise,' given the hotel opened during 'a time of uncertainty.' Thibault echoed this sentiment, noting, 'Unfortunately, with the rising vacancies and Oakland’s standing, at times, as a San Francisco spillover office market, it looks like Moxy was unable to survive.'
The Daily Mail has reached out to Marriott International for comment on the closure. The Moxy brand, known for offering chic yet affordable accommodation in fashionable, up-and-coming urban areas like Berlin and Brooklyn, now sees its Oakland venture cut short, leaving questions about the future of downtown revitalisation efforts in the city.
