Bankrupt San Jose Hotel Officially Acquired Following Auction
SAN JOSE – A real estate alliance has officially bought a bankrupt hotel in San Jose and is looking to rebrand it as Courtyard by Marriott following a hotel overhaul.
Four Points by Sheraton, a 196-room hotel at 1471 N. Fourth St. in northern San Jose, was purchased by an alliance of Santa Monica-based Beachpoint Capital Management and Pasadena-based ASAP Holdings, according to the reports. public archives.
The new owners paid $ 38.6 million for the San Jose hotel property, according to documents filed June 7 with the Santa Clara County Registrar’s Office.
Beachpoint Capital, an investment management company; and ASAP Holdings, which owns and operates hotels, resorts and other properties, is planning a major hotel upgrade and renovation in North San Jose.
“We were drawn to the hotel’s convenient location in Silicon Valley,” said Frank Yuan, CEO of ASAP. “It is a major market.”
The new owners also plan to undertake a rebranding of the hotel to Courtyard by Marriott, according to Yuan.
“Marriot is ok with the rebranding,” Yuan said.
The 196-room San Jose hotel is expected to undergo a major upgrade to prepare it for a rebranding.
“We will be completely renovating the hotel to become a Courtyard by Marriott,” said Yuan. “This is going to be a very big investment.”
The hotel landed on the auction block due to the bankruptcy of its former owner, Singapore-based Eagle Hospitality Trust. Eagle Hospitality had been looking for several months to auction off its entire portfolio of hotels.
Beachpoint won the auction for the North San Jose hotel by placing a bid of $ 41.4 million, according to U.S. bankruptcy court records.
“We were able to find a good opportunity to purchase the hotel through the auction process,” said Yuan.
The difference in prices is that the purchase amount of $ 38.6 million represents the value of the hotel structure and the land below. The additional $ 2.8 million that brought the total bid to $ 41.4 million represents the hotel fixtures, equipment, personal belongings and other items.
Yuan said the majority of financial support for the purchase of the hotel was provided by Beachpoint Capital.
ASAP owns many hotels in the United States, according to the company’s website.
“Our company has acquired hotels in the past seven to eight years,” Yuan said.
In the Bay Area, ASAP also owns the DoubleTree by Hilton, a 378-room waterfront hotel in the Berkeley Marina.
The company believes the long-term outlook is excellent for its newly purchased hotel in northern San Jose.
“Everyone knows Silicon Valley is the best investment in the world,” Yuan said. “Silicon Valley is the heart of America’s future.