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 construction financing for 105‑room Marriott Tribute hotel at 926 Hutash Street; work to start this month
A new 105‑room Marriott Tribute hotel will be built on a small parcel at 926 Hutash Street near Santa Barbara’s East Beach after the developer secured construction financing. Construction is set to begin this month, and the hotel is expected to open in about two years.
What’s happening now
The developer arranged a $16.5 million financing package described as CPACE construction financing and a longer 30‑year loan supplied by a group of lenders associated with Nuveen Green Capital. The financing is designed to cover energy and building‑system upgrades as part of the construction budget. Some other reports referenced a larger construction loan figure; that number conflicts with the $16.5 million CPACE amount.
Project basics
The project will be a branded Marriott Tribute Portfolio hotel with 105 guest rooms on a parcel that is under one acre. The lot sits between Highway 101 and the railroad tracks, near the Highway 101 South Milpas off‑ramp and is steps from a produce facility and an existing beachfront hotel. The parcel’s recent uses included an auto‑repair shop, storage and a car wash.
Size, stories and amenities
Published descriptions differ on the building height. Some information lists the hotel as three stories with rooftop amenities while other reports describe the property as four storeys tall. Amenity lists vary as well: general rooftop amenities are consistently mentioned, and some sources add a rooftop bar, a coffee bar, a fitness centre and roughly 3,000 square feet of meeting space. Those details may be refined as construction plans are finalized.
Design and approvals
The project went through an extended design review that involved more than a dozen meetings with the local Architectural Review Board. Formal approval of the plans came several years ago, marking the end of that review process and clearing the way for construction once financing and final permits were in hand.
Who is building and who is lending
The developer is a Newport Beach‑based firm that has completed a sizable portfolio of projects. A capital advisor arranged the CPACE portion of the financing and helped source the 30‑year loan from a trio of green lenders. The financing mix was structured to include CPACE‑eligible improvements such as an advanced building envelope, upgraded electrical and mechanical systems, seismic upgrades and other energy measures to lower operating costs and improve performance.
Why CPACE matters here
Commercial Property Assessed Clean Energy, or CPACE, lets developers add long‑term financing to a project for energy and resilience upgrades. In this project the CPACE element is intended to reduce the overall cost of capital for those specific improvements, and to make higher‑performance systems part of the build‑out from the start.
Local context and market notes
The site is close to the city’s beachfront and creative districts known for restaurants, wineries, breweries and art galleries, which should be a draw for visitors. The Tribute Portfolio brand focuses on independent, boutique‑style hotels with local character and vibrant public spaces. The broader hotel market shows a mix of activity, and this project joins other local changes in hospitality and lodging offerings.
Timeline and next steps
Groundwork and vertical construction are planned to begin this month. The developer expects the hotel to open to the public in approximately two years. Final construction permits and the detailed construction schedule will determine the exact phasing and completion timing.
Notes and discrepancies to watch
Two items reported in different summaries do not align: total construction loan figures and the reported number of stories. Observers should expect official project drawings and the final building permit filing to resolve those differences.
What this means for neighbors
The site occupies a small parcel near busy transportation corridors and hospitality properties. Construction activity will likely affect traffic and staging near the Highway 101 South Milpas off‑ramp and the adjacent railroad line during the build phase. Longer term, the hotel will add lodging capacity and rooftop public space near the beachfront district.
Frequently Asked Questions
What is being built at 926 Hutash Street?
A 105‑room Marriott Tribute Portfolio hotel on a parcel of less than one acre.
When will construction start and when will the hotel open?
Construction is scheduled to begin this month, with an expected opening in about two years, subject to permits and the construction schedule.
How is the project being financed?
Financing includes a reported $16.5 million CPACE construction package plus a 30‑year loan provided by a group of green capital lenders. Some reports cited a larger loan amount; the financing mix may include other sources not fully disclosed.
What will the CPACE funds cover?
The CPACE portion is intended to cover energy and resilience upgrades, including advanced building envelope work, electrical and mechanical systems, and seismic improvements.
How tall will the building be and what amenities will it have?
Reports differ on whether the hotel will be three or four stories. Rooftop amenities are consistently mentioned; other lists add a rooftop bar, a coffee bar, a fitness centre and about 3,000 square feet of meeting space. Final project plans will confirm exact layout and amenities.
Were the project plans approved locally?
The project completed an extended review that included more than a dozen design board meetings and received formal approval before financing and permits were finalized.
Will the hotel affect nearby traffic and neighbors?
Construction activity could affect nearby traffic during the build. Once open, the hotel will add lodging capacity and public rooftop space near the beachfront and nearby commercial districts.
Key project facts at a glance
| Feature | Detail |
|---|---|
| Project | Marriott Tribute Portfolio hotel (branded) |
| Rooms | 105 |
| Address | 926 Hutash Street |
| Parcel size | Less than one acre |
| Reported height | Reported as three stories in some sources, four storeys in others |
| Key amenities (reported) | Rooftop amenities; possible rooftop bar, coffee bar, fitness centre, ~3,000 sq ft meeting space |
| Developer | Newport Beach‑based development firm |
| Financing | Reported $16.5M CPACE plus a 30‑year loan from a trio of green lenders; some reports cited $30M |
| Uses covered by CPACE | Energy improvements, advanced building envelope, electrical, mechanical, seismic systems |
| Approvals | Completed extended design review and received formal architectural approval |
| Construction start | This month (planned) |
| Estimated opening | About two years after start |
| Location context | Between Highway 101 and railroad tracks, near Milpas off‑ramp, steps from beachfront hotel and produce facility |
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 FL News
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