Appellation plans US$62.6 million Californian luxury boutique hotel

Culinary-forward hotel brand Appellation is adding to its Californian portfolio in the USA with a new site in Healdsburg, Sonoma County.

Appellation Healdsburg is the result of a partnership between Comstock Development Company, Wine Country Holdings – an affiliate of Appellation, and HVH Investment.

Rare market position

Anticipated to open in 2025, the 108-key luxury boutique hotel will feature an array of amenities and facilities, including a 160-seat Charlie Palmer signature restaurant and bar, rooftop bar, fitness club, spa and two pools, and 15,500 square feet of meeting and event space.

The property will hold a rare market position as a four-and-a-half star resort that provides the amenities and experiences that the modern-day traveller seeks, while immersing guests into the local community.

Eco construction

The project has now received US$62.6 million in Commercial Property Assessed Clean Energy (C-PACE) financing for construction, provided by GreenRock Capital and Petros PACE Finance.

The hotel is being developed as part of the broader North Village mixed use master plan, located two miles north of downtown Healdsburg. The full master site encompasses: a housing project consisting of 27 Category C townhomes; a mixed-use development by Burbank Housing delivering 53 workforce housing units atop approximately 12,500 sq ft of retail; and Enso Village, the Zen-inspired residential project nearing its final stages of construction through a collaboration between Kendal Homes and the San Francisco Zen Center.

Environmentally sustainable

Robert Comstock, principal, Comstock, stated: “Comstock prides itself not only on being a leader in construction and architecture, but also for reducing our carbon footprint and creating environmentally sustainable buildings.”

The developer’s CFO, Nicholas Long, said: “This financing provides a long-term source of sustainability capital for this asset that has been accretive in the capital stack.”

Innovative financing

Mansoor Ghori, CEO and founder of Petros PACE Finance, added: “The Healdsburg hotel project is a prime example of a sophisticated developer using C-PACE to supplement their complex capital stack with financing that is both innovative and sustainable.

“Once considered alternative or niche financing, C-PACE is now poised to lead the commercial real estate industry forward as a mainstream solution for funding across all property types and development needs.”

Appellation addition

The Healdsburg site follows the announcement of what Appellation termed as California’s ‘first experiential boutique hotel’ earlier this year.

Debuting in Q1 2026 in Petaluma, the 93-room Appellation Petaluma will feature a 190-seat street-front restaurant and will be crowned with the only rooftop bar in town.