Rooms increase from 60 to 73 while project cost doubles to $40 million
An artist’s concept of the Hotel MoHi’s new design. Photo courtesy Frank Leal
By Staff Reports
The downtown destination resort hotel project will get an expansion and resume construction after the Morgan Hill City Council approved plans requested by developer Frank Leal.
The project will see a fifth floor and 13 more guest rooms added. The new design will raise the height of the hotel from 55 to 65 feet and increase the number of rooms from 60 to 73.
Leal told the council at the Nov. 16 meeting if promised new investment funds come through he will resume construction by next summer.
“I really want this opportunity,” he said.
Formerly the Granada Hotel and renamed Hotel MoHi, the site is located on Monterey Road between First and Second streets next to the Granada Theater.
Prior to the COVID-19 pandemic that severely impacted the hotel and travel industry, Leal had built two floors of foundation and underground utility work. Supply chain disruptions limited the flow of materials and costs doubled the price of the project to $40 million.
When the pandemic hit, Leal temporarily turned the uncompleted structure into the existing MOHI Social restaurant, which will close when construction resumes on the hotel.
Leal told the council the only thing delaying the project was the lack of financing. He recently secured a “letter of intent” from an investor for a short-term loan that will allow him to resume construction now that the expanded plans are approved.
The new plans retain original elements that include a pool with outdoor living and lounge area, market hall, bars and restaurants, valet parking and a banquet hall with meeting rooms.
