By Meghan Hall
A bankrupt San Jose hotel has traded hands, building upon the number of hospitality properties that have traded hands in recent weeks. Four Points by Sheraton in North San Jose traded for $38.6 million, or for about $196,940 per room. The new owners include Beachpoint Capital and ASAP Holdings, according to announcement made by Eagle Hospitality.
The hotel is located at 1471 N. Fourth St. and includes 196 rooms. The property features amenities such as outdoor swimming pool and health and fitness center. A restaurant, called the Hangar Bar and Grill, is also part of the asset. The property catered to both corporate and leisure travelers.
“Relax and rejuvenate at Four Points by Sheraton San Jose Airport. Your stay begins almost the moment your plane lands thanks to our free shuttle to and from Norman Y. Mineta San Jose International Airport,” states the property’s website. “Once you arrive at our hotel, you’ll find yourself surrounded by the area’s most notable locales including Santana Row, the San Jose McEnery Convention Center and Silicon Valley. Following your day of meetings or adventures, retire to our spacious rooms and suites featuring complimentary high-speed Wi-Fi, flat-panel TVs and plush mattresses.”
At bankruptcy auction, Beachpoint Capital and ASAP Holdings submitted a bid of $41.4 million, which also includes fixtures, equipment and other property within the hotel. At the same time, Eagle Hospitality also sold four other hotels as a result of Chapter 11 bankruptcy: the Sheraton Denver Tech Center for $9.2 million, Embassy Suites by Hilton Anaheim North for $33.10 million, Double Tree by Hilton Salt Lake City Airport for $33.8 million, and Hilton Atlanta Northeast for $38.2 million. In all, the transactions amount to $155.4 million in sales.
In San Jose, Pasadena,Calif. -based ASAP Holdings and Santa Monica, Calif.-based Beachpoint Capital Management intend to undertake a large renovation of the Four Points by Sheraton and rebrand the asset to fit with the Courtyard by Marriott Brand. Courtyard by Marriott is a mid-priced hotel brand that is often designed to accommodate “modern” business travelers. The brand launched in the market over 30 years ago, according to its website. To date, there are 1,264 Courtyard by Marriott hotels in 58 countries. 266 properties are in the pipeline under the brand, as well. Hotels feature business centers with computers and printers, a fitness center, pool, and wireless internet.
The hotel industry is inching forward as deals and plans for hotel revamps take shape. Also at the beginning of the month, Aloft Santa Clara, also located in San Jose, sold for $54 million. The property was purchased by HRI Properties and sold by CalTrex Hospitality. In May, the Plaza Suites Hotel in Santa Clara traded for $72.5 million. In Redwood City, Beals Martin and Hornberger + Worstell are working on repositioning the historic Sequoia Hotel. Combined, the deals and project show movement in an industry long-stalled by the coronavirus pandemic.