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 Lands $16.5M CPACE Construction Loan for 105‑Room Marriott Tribute Hotel; Construction Starts This Month, Opening in Two Years
A new 105‑room Marriott Tribute hotel planned for 926 Hutash Street in Santa Barbara has secured a $16.5 million CPACE construction loan and is set to begin construction this month, with an anticipated public opening in about two years. The project sits on a parcel of less than one acre tucked between Highway 101 and the railroad tracks, near the Highway 101 South Milpas off‑ramp and within walking distance of the beachfront area.
Financing and capital stack
Financing was arranged through an intermediary that sourced a 30‑year CPACE loan placed with a group of lenders from Nuveen Green Capital. The capital was structured to include energy and resiliency upgrades, and the CPACE element was highlighted as a cost‑reducing tool for construction capital. Lenders and arrangers described the financing as covering eligible energy improvements and major building systems, including advanced building envelope work, electrical and mechanical systems, and seismic upgrades.
Some published accounts referenced a larger construction loan figure, creating a discrepancy in reported totals; the primary, confirmed figure for the CPACE portion in this financing round is $16.5 million.
Developer, approvals and design history
The project developer is Stratus Development Partners, a Newport Beach–based firm with a multi‑project portfolio. The hotel design went through an extended public review that included more than a dozen meetings with the local Architectural Review Board before official approval was granted on October 17, 2019. The design process addressed neighborhood fit and visual impacts given the site’s compact size and coastal proximity.
Site and scale
The hotel parcel at 926 Hutash Street is less than one acre and occupies a narrow urban footprint between major transportation corridors. The lot’s past uses included an auto‑repair shop, storage uses, and a car wash. It is situated steps from a long‑standing produce facility and adjacent to an existing beachfront full‑service hotel.
Height, rooms and amenities
The proposed property is described in different accounts as either three or four stories tall, a discrepancy between sources. The program calls for rooftop amenities, which several reports specify will include a rooftop bar with ocean views. Additional reported amenities include a coffee bar, a fitness center, and roughly 3,000 square feet of meeting space. The hotel will operate under Marriott’s Tribute Portfolio, a brand collection focused on boutique properties with distinctive design and local connections.
Timeline and next steps
Groundbreaking is scheduled to begin this month. With construction underway, the project team expects the hotel to open to the public in about two years. The financing is intended to support construction as well as the integration of energy‑saving and resilience features that qualify for CPACE funding.
Context and market notes
The hotel will add to the city’s coastal lodging inventory and the Tribute Portfolio’s growing roster of independent‑style properties. The developer and financing partners highlighted the location’s proximity to the beachfront and nearby arts, dining and tasting‑room districts as an attraction for visitors. Broader regional coverage of hospitality projects indicates ongoing activity and a mix of new builds and brand integrations across the state and beyond.
What remains uncertain
A few key items remain subject to clarification as the project moves forward: the final confirmed number of stories (three vs. four in different reports), any adjustments to the total construction loan amount beyond the reported CPACE tranche, and detailed public plans for rooftop operations and meeting‑space programming. Those details are typically finalized as construction documents are completed and permits are issued.
FAQ
What is the financed project?
The project is a 105‑room Marriott Tribute hotel planned for 926 Hutash Street in Santa Barbara.
How much financing was secured?
The confirmed CPACE construction financing reported for the project is $16.5 million, arranged as part of a larger 30‑year loan structure sourced by an arranger’s team and placed with lenders from Nuveen Green Capital.
When does construction start and when will the hotel open?
Construction is scheduled to start this month, and the hotel is expected to open in approximately two years.
What will the financing pay for?
The CPACE portion is earmarked for energy and resilience improvements, including advanced building envelope work, upgraded electrical and mechanical systems, and seismic enhancements.
How tall will the building be?
Sources differ: the project is described as either three or four stories tall. Final approved plans and permit documents will determine the definitive height.
Who is the developer?
The developer is Stratus Development Partners, a Newport Beach–based firm responsible for the project’s design and delivery.
Key project features
| Feature | Detail |
|---|---|
| Location | 926 Hutash Street, less than one acre, between Highway 101 and railroad tracks near South Milpas off‑ramp |
| Rooms | 105 rooms |
| Brand | Marriott Tribute Portfolio (boutique/independent collection) |
| Financing | $16.5M CPACE construction loan within a 30-year financing placement by lenders from Nuveen Green Capital |
| Developer | Stratus Development Partners |
| Height | Reported as three or four stories; final plans will confirm |
| Amenities (reported) | Rooftop amenities including a rooftop bar with ocean views, coffee bar, fitness center, and about 3,000 sq ft of meeting space |
| Timeline | Construction begins this month; opening expected in two years |
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 CA News
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