By Meghan Hall
After more than 100 years in operation, San Jose’s iconic Hayes Mansion, located in the Edenvale neighborhood, has sold to JMA Ventures LLC for $27.8 million, according to public documents. The San Francisco-based full-service investment and development firm will conduct an extensive, multi-million dollar remodel and repositioning before handing the hotel’s management off to Arlington, Va.-based Interstate Hotels & Resorts upon re-opening. The City of San Jose has been negotiating with JMA Ventures and an associated entity, Ryan LLC, on the details of the sale since June 2018, when the City Council approved the deal for the 214-room hotel.
The sale means the City will no longer be responsible for an annual subsidy between $2 million and $6 million, which was the result of prior renovations conducted when the City purchased the hotel from the Redevelopment Agency in 1984. San Jose city officials had anticipated selling the property to Washington, D.C.-based Asha Cos. in 2017 for $47 million, but the deal fell through.
“The Hayes Mansion is an iconic hotel uniquely positioned to cater to the growing Silicon Valley market while having the third largest amount of meeting space of all hotels in San Jose,” said Kevin Morgan, Partner at JMA Ventures in a statement. “We would like to thank Mayor Sam Liccardo and the Office of Economic Development of the City of San Jose, as well as Councilmember Sergio Jimenez, for working with us through this complex transaction and for their confidence in JMA to be great stewards of this important asset.”
The 6-acre estate is located at 200 Edenvale Ave. and is next to 20-acres of parkland, just 15 minutes from San Jose International Airport. The property is also 45 minutes from both San Francisco and Monterey. The hotel also contains 33,000 square feet of meetings and events space, 24 conference rooms, and other amenities, such as several restaurants, a 24-hour fitness center and a heated outdoor pool.
The mansion was constructed when Mary Chynoweth, the widow of Anson Hayes, commissioned architect George Page in 1903 to build a home for herself and her then-husband, San Jose attorney Thomas Chynoweth. The family sold the property in the 1950s, although it fell into disrepair until the City of San Jose purchased and expanded the property. Considered a prime example of late 19th-century Mediterranean Revival Architecture, the mansion earned its place on the U.S. National Register of Historic Places in 1975 and was declared a city landmark in 1981.
According to Interstate and JMA Ventures, renovations on the property are expected to begin late this year. The upgrades are expected to cost around $15 million, according to City officials. The renovation will add luxury design and amenities, although those specific details have yet to be released.
“Interstate is proud to be selected as the hotel management partner for the legendary Hayes Mansion,” said Interstate Hotels & Resorts President and CEO, Michael J. Deitemeyer. “Our team will play an integral role in repositioning this historic landmark property, creating a modern luxury experience to be enjoyed by guests for decades to come.”