Homewood Suites Set to Add Fourth South Bay Property in San Jose

Homewood Suites, South Bay, San Jose, Silicon Valley, Bay Area, Hotel
Homewood Suites by Hilton San Jose Airport-Silicon Valley
Homewood Suites, South Bay, San Jose, Silicon Valley, Bay Area, Hotel
Homewood Suites by Hilton San Jose Airport-Silicon Valley

By David Goll

Homewood Suites plans to open its fourth Silicon Valley location—and second in San Jose—in September 2017.

The new location at 4305 N. First St., in the northwest corner of the junction with busy Highway 237, will have 145 rooms on four floors. The 105,720-square-foot building will sit on a 3.5-acre site on the periphery of a 2.3 million-square-foot business park including office, R&D and industrial uses.

[contextly_sidebar id=”QluTTSCZpACbT1apkF2AUAJaxRmtyFAj”]Homewood Suites, considered an upscale extended-stay hotel with more than 300 locations in North America, is owned by Hilton Hotels Corp., based in Beverly Hills. The hotel chain already operates a location at 10 W. Trimble Road in north San Jose, as well as in Fremont and Palo Alto.

During fiscal 2014-2015—the most recent year for which figures are available—large retail and hotel projects were credited for fueling the lion’s share of $246 million in commercial construction in San Jose, a 13-year high. Between 2008 and 2014, city officials approved the construction of more than 2,500 hotel rooms, including the new Homewood Suites.

Rebecca Bustos, planner for the city’s Planning, Building and Code Enforcement department, said the new hotel was approved by city officials in September 2014. The city and region are a magnet for hotel operators looking to capitalize on its robust business climate.

“Silicon Valley has [been], and continues to be, a favorable market for Hilton’s suites brands like Homewood Suites,” said Adrian Kurre, global head of Homewood Suites and Home2 Suites, another Hilton-owned extended-stay hostelry. In a tech hub like Silicon Valley, business travel continues to increase along with the area’s significant economic growth. Last year, the area saw job growth upwards of 4 percent, marking the highest level since 2000.”

The new Homewood Suites will be built and operated by franchisee OTO Development, a Spartanburg, S.C.-based developer with a portfolio of 530 hotel properties nationwide. The company also operates the Hilton Garden Inn in Palo Alto and Courtyard by Marriott hotel in Redwood City. A company official did not return messages seeking comment on the new San Jose location.

Though its guests are both business and leisure travelers, Kurre said Homewood Suites is so popular with business people seeking such accommodations; the chain was voted the top extended stay hotel in the 2015 Business Travel News Hotel Brand Survey.

Rooms at the hotel have separate living and sleeping quarters, fully-equipped kitchens with full-sized refrigerators and complimentary Internet service. Kurre said his company would continue to seek expansion opportunities in the region and state, but declined to give specific locations. California, especially in its major metropolitan centers like the Bay Area, is famously expensive for real estate development.

“To adapt to these high-barrier markets, both Homewood Suites and Home2 Suites have pioneered innovative models with a new more flexible prototype, making it easier for owners to develop these extended stay hotels in tighter urban markets,” he said.

West Coast Commercial Real Estate News