Santa Barbara, September 17, 2025
News Summary
A 105-room Marriott Tribute Portfolio hotel will be built on a parcel at 926 Hutash Street near Santa Barbara’s East Beach after the developer secured construction financing. The project includes a reported $16.5 million CPACE financing package plus a longer 30-year loan from green lenders to fund energy and resilience upgrades. The boutique-style hotel, sited on less than an acre between Highway 101 and the railroad, cleared an extended design review and received formal approval. Groundwork and vertical construction are planned to begin this month, with an expected opening in about two years.
Stratus Development Secures $16.5M CPACE Construction Loan for 105‑Room Marriott Tribute Hotel near East Beach; Groundbreaking This Month, Opening in Two Years
What happened: A Newport Beach developer has closed a $16.5 million construction loan using a CPACE structure to build a 105‑room Marriott Tribute hotel on a small parcel near Santa Barbara’s East Beach. Construction is scheduled to begin this month and the project is expected to open in roughly two years.
Key project facts
The hotel will sit at 926 Hutash Street, a parcel tucked between Highway 101 and the railroad tracks and close to the Highway 101 South Milpas off‑ramp. The site is under one acre and is steps away from existing beachfront hospitality and produce industry uses. Past uses at the site included an auto‑repair shop, storage, and a car wash.
Financing and capital stack
The construction financing was arranged through a capital placement firm and reported as a CPACE construction loan worth $16.5 million. The financing is structured as a long term, 30‑year package provided by a group of lenders affiliated with a green capital platform. The CPACE component is being applied to energy and resilience upgrades, including an advanced building envelope and electrical, mechanical and seismic systems, and is credited with lowering the overall cost of capital for the build.
There is a discrepancy in public accounts about the total construction loan amount; some reports list a higher figure for the project’s construction loan. The developer and financing adviser have emphasized the role of CPACE‑eligible improvements in the financing plan.
Design, approvals and timeline
The project went through an extensive local design review process that included more than a dozen meetings with the city’s Architectural Review Board before receiving formal approval in October 2019. The approved design calls for a multi‑story hotel with rooftop amenities. Sources differ on whether the finished building will be three or four stories tall; design descriptions commonly reference rooftop spaces that will provide ocean views.
Construction is set to begin this month, with an anticipated public opening in about two years, assuming the schedule holds and permitting and construction proceed without major delays.
Developer and partners
The project sponsor is a Newport Beach–based development firm with a portfolio of hospitality and mixed‑use projects. The financing was sourced through a capital advisory firm that specializes in bringing institutional and green lenders into real estate deals. A trio of green‑capital lenders is reported to be the long‑term lender on the 30‑year debt portion associated with the CPACE program.
Hotel brand and amenities
The property will join a lifestyle collection of hotels that emphasizes independent design and strong local connections. Planned guest offerings include rooftop amenities; some accounts also list a rooftop bar, coffee bar, fitness center, and meeting space of roughly 3,000 square feet, though not all descriptions match on every detail. The hotel is positioned to serve visitors drawn to the nearby beachfront, dining, wineries, breweries and arts district.
Site context and local relevance
The small parcel’s location by the highway and rail line places it within easy reach of the shoreline and an active visitor neighborhood. The project converts a previously industrial/service site into hospitality use, adding lodging capacity in an area that is already home to established resort properties. The use of CPACE funds signals an emphasis on energy efficiency and system upgrades, aligning construction choices with long‑term operational resilience.
Discrepancies and open points
Public reporting shows two main inconsistencies: the total construction loan figure and the building height. Some accounts list the financing at $16.5 million while others cite a larger loan amount. Likewise, the building has been described both as a three‑story and four‑storey structure. These differences are not uncommon in early reporting on developments where multiple financing components and design iterations exist.
Bottom line
This project represents a small‑footprint, midscale to upper‑end hotel development using a CPACE financing tool to underwrite energy and resilience upgrades. With construction starting this month and a projected two‑year build schedule, the site is likely to transform from industrial uses to a branded boutique hotel serving beach and arts district visitors.
Frequently Asked Questions
When will construction start?
Construction is scheduled to begin this month.
How many rooms will the hotel have?
The hotel is planned to include 105 guest rooms.
Where is the site located?
The site is at 926 Hutash Street, situated between Highway 101 and the railroad tracks, near the Highway 101 South Milpas off‑ramp and close to East Beach.
What financing was used?
The project used a CPACE construction financing element reported at $16.5 million, incorporated into a 30‑year loan package provided by a group of green capital lenders.
When is the hotel expected to open?
The projected opening for public operations is about two years from the start of construction.
What amenities are planned?
Plans include rooftop amenities with ocean views; some descriptions also list a rooftop bar, coffee bar, fitness center and meeting space of around 3,000 square feet, though specific offerings may change over time.
Are there any unresolved details?
Yes. Public accounts differ on the building height (three vs four stories) and on the total construction loan figure reported by some sources. Final details will be clarified as construction documents are finalized and permits are issued.
Project key features
| Feature | Details |
|---|---|
| Project type | 105‑room Marriott Tribute hotel |
| Site address | 926 Hutash Street (near East Beach; between Highway 101 and railroad tracks) |
| Parcel size | Less than one acre |
| Height | Described as three to four stories in various accounts; rooftop amenities planned |
| Financing | $16.5M CPACE construction financing within a 30‑year loan package from green capital lenders |
| Construction start | This month |
| Estimated opening | About two years after construction start |
| Planned amenities | Rooftop amenities, possible rooftop bar, coffee bar, fitness center, ~3,000 sq ft meeting space |
| Site history | Former auto‑repair, storage, and car wash uses |
Deeper Dive: News & Info About This Topic
Additional Resources
- Boutique Hotelier: Marriott Tribute Hotel Santa Barbara Fund
- Wikipedia: Tribute Portfolio
- Travel and Tour World: Santa Barbara Marriott hotel gets boost for new development
- Google Search: 926 Hutash Street Santa Barbara Marriott Tribute
- Santa Maria Times: Solvang’s Corque Hotel joins Marriott’s Tribute Portfolio
- Google Scholar: CPACE Santa Barbara hotel
- Santa Ynez Valley Star: Corque Hotel in Solvang joins Marriott Bonvoy (Tribute Portfolio)
- Encyclopedia Britannica: Marriott Tribute Portfolio
- The Independent: Marriott’s home-sharing raises questions over rental enforcement
- Google News: Marriott home sharing rental enforcement
Author: Construction NY News
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