Starwood Buys Sunnyvale Hotel Near Jay Paul’s Google Megacampus

October 14, 2015

Here’s a deal that shows just how good it is to have Google as your neighbor.

Starwood Capital Group has paid a rumored $100 million — or $575,000 per key — for a the Sheraton Sunnyvale at 1100 N. Mathilda Ave., according to industry sources and property records.

It’s a very strong number, and one that probably has to do with two things: The 174-room property is slated to be surrounded by Jay Paul Co.’s nearly 2-million-square-foot Moffett Place development, which Google fully leased last year and is now under construction. All that Google business is likely to bring in plenty of lodging demand.

Another reason: Room to grow on. Last year, Sunnyvale approved an expansion to the project, bringing it to about 342 rooms.