The group has been looking at several properties in the downtown area with a focus more toward Jack London Square. Terravid's proposed project would be similar to a four-star property catering to business travelers.

The partners hope to have a site by the end of the year and develop with in a partnership with Design Hotels Inc. of Sausalito, which owns 200 business-class and luxury class boutique hotels worldwide. Prior to that, however, Terravid is working with Design Hotels to develop a 55-room property in Sonoma County.

Terravid is not the only hotel developer looking in the Oakland market, according to some reports. The San Francisco based-Kimpton Group owns 29 boutique hotels and 28 restaurants. The company is more willing to give Oakland a try as the city's infrastructure improves.