This weekend we’re visiting our daughter at UC Berkeley. We’re staying in Oakland, right near the Oakland Coliseum, at the Quality Inn (Quality Inn page; TripAdvisor). Although the location is in Oakland, the positive reviews of the hotel (both at the TripAdvisor link and on the AAA page) combined with the price made this a good choice. Behind us is a Clarion hotel that is fenced off (and the first thing you see as you exit the 880 at Hegenberger). I asked our desk clerk about it, and she indicated it had been closed for years. We speculated on why… asbestos? mold? something else? Naturally, this (combined with a long-time interest in seemingly abandoned buildings) piqued my curiosity, so I decided to see what my Google-foo could find…
It appears the property (listed as being at either 500 Hegenberg Road or 8400 Edes Aveue) was originally built in 1962 as a low-rise two-story property with just under 200 rooms, and appears to have been a Holiday Inn. It is the oldest of the various group of hotels in this area (it is next to a Days Hotel, a Comfort Inn and Suites (built as a Fairfield), and Motel 6, and backs onto a La Quinta and a Quality Inn (which is where we are staying)). The date (1962) means that it was likely built around the time that Route 17 (now I-880) was improved to be a freeway. The Caltrans bridge log shows bridges in the area built in 1948 or 1950, and renovated in 1963; this would likely mean there was an original Route 17 expressway in the area that was remodeled into the freeway in the early 1960s. 
In 1986, a six-story tower with 100 rooms was added and the hotel was renovated. In 2002, the hotel was completely renovated again.
Sometime after April 2005, the property appears to have changed management hands and was renovated into a Clarion Hotel. Based on the reviews at the time (Tripadvisor, Expedia), the property was going downhill. Poor service, poor furnishings, etc. In November 2005, the property closed due to mismanagement (I couldn’t find any other reason stated). In March 2006, it went on the market. By April, it was off the market again. I have seen no web reports on the hotel post 2005, so I’m guessing if it was sold, it wasn’t reopened.
In 2007, it went on the market again. The price changed numerous times, and when off-market in 2009 (presumably because it was sold). Some conditional use permits were required; these were appealed by local unions as this was a non-union hotel. A press release indicates it was supposedly undergoing an extensive renovation costing approximately $2 million in renovation, including new custom design tile work throughout the lobby and public areas. Based on the numbers given, they started remodeling the tower in October 2009, and were then going to complete the low-rise buildings. A soft opening was scheduled, but appears to have never happened. The web page set up for the hotel indicates “unexpected” delays. My guess, given the dates, is that there was money and financing troubles.
In any case, by December 2010, the hotel was back on the market at a below-market price (, ) of $11.5 million. It was sold in November 2012. Based on what I could see from my room, it is currently being renovated completely. It looks like rooms in the 2-story wing have been completely emptied to the walls, so they are being refurnished and remodeled at the minimum. The six-story tower also appears to be undergoing a remodel, but I’ve been unable to observe that much due to the line-of-sight from my hotel.