By Brittney Sherman
On November 16, the MoHi Hotel and Marketplace received approval for a partial fifth floor and (13) additional rooms, two key components for the owner to secure the necessary financing to resume construction. Since the project was originally presented in 2015, the valuation has more than doubled, resulting in the owner’s inability to continue privately financing the project. Securing this approval and funding is projected to get the hotel “to occupancy” by December 31, 2025.
Frank Leal purchased both the Granada Theater and Downtown Mall properties in 2015, as part of the dissolution of the Redevelopment Agency and associated City-owned property. His intention was to renovate and reopen the Granada Theater and construct a 60-room full-service boutique hotel and market hall. The Granada Theater was re-stored in 2016 and has since operated as an entertainment venue. Construction on the hotel began in 2017 however ceased in 2020 due to the Covid-19 pandemic and subsequent challenges.
Although construction came to a standstill, the 2-story structure was far from abandoned. From the shell of the defunct hotel arose a wildly popular dining concept called Mohi Social. Referenced as one of the “Top (9) Fresh Air Finds” for outdoor dining by the Mercury News, the construction shell was transformed into a bustling outdoor dining restaurant offering upscale cuisine and elaborate cocktails. As construction on the hotel resumes, restaurant patrons can continue enjoying Leal’s dining offerings at the soon-to-open MOHI Farms, located just down the road at 90 E 3rd Street.
Have questions? Contact City of Morgan Hill Economic Development Director Matt Mahood at Matt.Mahood@morganhill.ca.gov