The Westin San Jose Trades Hands, Selling for $44.9MM

The Westin San Jose, Aju Hotels and Resorts, Khanna Enterprises, The Sainte Claire Hotel, AWH, Roxborough Group
Courtesy of The Westin San Jose

By Meghan Hall

A historic hotel in downtown San Jose has traded hands as the hospitality sector continues to face headwinds due to the pandemic. The Westin San Jose–previously known as The Sainte Claire Hotel–sold for $44.9 million, according to reporting by The Mercury News. Khanna Enterprises, based in Irvine, Calif., was the buyer. 

The previous owners, South Korea-based Aju Hotels and Resorts, ended up selling the asset at a loss. The company originally acquired the asset nearly five years ago for $64 million, or about $374,000 per unit. At the time, Aju had acquired the property from Wolff Urban Development, which had owned The Westin since about 2011.

The property is located at 302 S. Market St. and was originally built in 1926. Now on the National Register of Historic Places, the property was originally designed by Weeks and Day. The hotel was then later restored in 1990, when it was rebranded into the Hyatt Sainte Claire. In 2015, it was rebranded once again into The Westin.

The property is at the center of downtown, and in pre-COVID days, near several critical hubs. The San Jose McEnery Convention Center, as well as San Jose State University, are just blocks away. Adobe’s world headquarters is also nearby, as is San Pedro Square.

Even as the market remains slow, hotels in the area continue to sell. In September, AWH Partners and The Roxborough Group purchased San Francisco’s Villa Florence Hotel for $87.5 million. Just days after closing on the Villa Florence Hotel with investment partner The Roxborough Group, AWHpurchased the Hilton Garden Inn Fremont Milpitas for $38.9 million, or about $268,275 per room.

In December, The Hyatt Place San Jose Airport, located at 82 Karina Court, sold for $47.7 million, or about $530,000 per room. In all, the hotel has 90 keys. In another deal, Hyatt House San Jose Airport, sold for $41.4 million, or about $250,909 per room. Both hotels were sold to Veeraganti Ranganath, who is believed to have bought out an investment partner in the deals.

West Coast Commercial Real Estate News