188 Key AC by Marriott in Santa Clara Nears Completion

Santa Clara, T2 Hospitality, Santa Clara, AC Hotel by Marriott, Evolution Hospitality, San Jose International Airport, Sunnyvale, San Jose, Silicon Valley, Walmart, AMC Mercado Theater. Whole Foods, Qualcomm, GoEngineer, Intel, Groupon
Rendering Courtesy of AC by Marriott

By Meghan Hall

A 188-key Santa Clara hotel approved in December 2015 is preparing to make its debut. Proposed by Newport, Calif.-based T2 Hospitality, Santa Clara’s AC Hotel by Marriott is under construction, with the hotel’s grand opening slated for July 2019. When completed, the hotel, located at 2970 Lakeside Drive and managed by Evolution Hospitality, will strive to cater to what the hotel’s website describes as the “modern business traveler.” 

In addition to 188 guest rooms, the seven-story development will feature two meeting rooms, media salons — complete with Haworth Workware technology — and 5,000 square feet of outdoor gathering space. A four-story On-site parking structure and patio space with a pool, outdoor fireplace and lounge seating are also included in the project plans. A fitness center and free high-speed internet are also accessible to the hotel’s guests. According to project documents, the guest rooms will be a mix of mostly king rooms, double queens and several family suites. The total square footage of the building is 94,200 square feet.

Currently, the property is developed with a 10,300 square foot restaurant and is located within ten minutes of San Jose International Airport, downtown Sunnyvale, north San Jose and downtown Santa Clara. Just off of State Route 101 and the Lawrence Expressway, 2970 Lakeside is also just adjacent to a shopping center anchored by a Walmart and AMC Mercado Theater. Whole Foods, as well as numerous other local technology companies such as Qualcomm, GoEngineer, Intel and Groupon have offices nearby.

According to T2 Hopsitality’s website, AC Hotel Santa Clara/San Jose Airport is one of four AC Hotels in development in Silicon Valley.

Pasadena-based DLR Group is the architect for the project. The AC Hotel Brand by Marriott is the fruit of a joint venture between hotelier Antonio Catalan, AC Hotels and Marriott, which began in 2011. The brand specifically seeks to channel European lifestyle and design and cater to entrepreneurial and global travelers, such as those who frequent Silicon Valley thanks to the major technology areas who make the region home.

As of the first quarter of 2019, the AC Hotel by Marriott brand had nearly 150 hotels open worldwide, including 54 hotels and 9,169 rooms, in the United States, according to Marriott’s development website. There are currently 110 approved and under construction properties, totaling 18,704 rooms, in the pipeline, including 86 in the United States and Canada. Across the franchise, the daily average occupancy rate is 74.8 percent and the average RevPAR $132.31. Marriott and AC Hotels estimate that the rough cost per key for the development of a hotel with between 151 and 200 rooms is between $113,000 and $177,000. 

There are several other AC Hotels in the San Francisco Bay Area, including the 182-room AC Hotel Sunnyvale Cupertino, which opened in 2018, and San Jose’s AC Hotel Marriott. The latter sold for $95.4 million, or about $425,000 per room, at the beginning of April of this year. An affiliate of AVR Realty, based in Yonkers, N.Y., bought the 210-key room, which was built by Rockbridge Construction and opened in 2017.

As of this writing, T2 Hospitality had not returned The Registry’s request for comment.

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