Contact Us

Bay Area's First Modular Hotel Under Construction

Crews install modular hotel units.

Developers are in the process of building the Bay Area's first modular hotel. The 144-room Home2 Suites by Hilton hotel at 550 Gateway Blvd. in South San Francisco is being developed by Southern Hospitality Services and built by Akshar Development. It is expected to open in the spring. 

The hotelier is using the South San Francisco hotel as a test case in how it can build more hotels faster, according to the San Francisco Business Times. Marriott International also has been ramping up use of modular construction across North America.

“The unmatched efficiency of modular building allows us to provide a consistent, high-quality product constructed in as little as half the time of a traditional build, allowing owners to see an even faster return on their investment," Home2 Suites by Hilton Global Head Adrian Kurre said in a statement.

Guerdon Modular Buildings manufactured the units in Boise, Idaho, and delivered the modular units to the future site of the Home2 Suites by Hilton San Francisco Airport North. The prefabricated suites have in-room kitchens and separate living and sleeping areas. 

“The Bay Area’s hospitality industry has a high demand to meet and it must look beyond traditional methods to catch up. Using modular construction is one of the best and fastest ways to do it,” Guerdon Marketing Manager Paul Dille said in an email.

Crews are expected to install eight to 10 modular units per day with the site going from foundation to fully erected building in less than two weeks. After the crane install, crews will complete exteriors, common spaces and corridors. 

Rendering of Home2 Suites by Hilton San Francisco Airport North in South San Francisco

The modular construction company has experienced increased interest and has fielded calls daily from developers, including hoteliers in the Bay Area, looking for solutions to increased construction costs, build times and budgets, Dille said.

“Having Hilton onboard, giving [its] seal of approval, means a lot to the industry and tells prospective hoteliers that modular is a viable option,” Dille said.

Guerdon currently has eight active modular projects in the Bay Area, including a supportive housing project in San Jose and a mixed-income housing project in Oakland. Three of those projects are hotels; an additional half-dozen hotels are coming down the pipeline, all slated for the Bay Area, Dille said.

“This isn’t the first modular project in the area and it definitely isn’t the last,” Dille said.

Home2 Suites will offer free internet, communal spaces and trademarked Home2 Suites amenities such as Spin2 Cycle, a combined laundry and fitness area; Home2 MKT, which offers grab-and-go items; and the Inspired Table, a complimentary daily breakfast. Additional amenities include an outdoor fire pit and grill area and a game room.

The hotel also will feature several sustainability elements, including solar panels that will produce about 50% of the hotel’s energy, a bio-retention pond to filter water runoff and additional elements to reduce the hotel’s carbon footprint.