There are lots of hotels up for sale in downtown states all over the country but we will concentrate on one small section at the moment and that will be in San Jose.
Downtown Hotels Being sold off
Downtown in San Jose there is a lot of hotels changing hands, the Crowne Plaza hotel is one of the latest to be up for sale and is estimated to be changing hands for a cool $17M. It is on of the seven largest hotels in San Jose. Crowne plaza belongs to the Meristar Hospitality Group. They are selling to the new prospective buyer DiNapoli Capital Partners after a previous sale fell through at the last moment. Although the price tag of $72,000 per room is considerably lower than the Hyatt St Clare that sold for $120,000 in June. There have been numerous hotel properties for sale in the last year.
Hotels sold or in process
These include The Freemont Mariot that is in the process of being sold and the Clarion Hotel was sold and is now Park Plaza San Jose Airport, The Hilton Monterey and Hilton Santa Clara have also changed owners there is now a lot of interest in hotel properties even more than commercial or office buildings purely because of the commercial investment purposes.
This is amazing, considering that the hotel industry as a whole in San Jose has been falling behind the nationwide general improvement.
Hotel Occupancy Rises but Rates Stay
There is a greater increase in hotel occupancy rates, but prices per room have raised little in the last few months. Of the seven major hotels in San Jose all but a few have either changed hands or are in the process of doing so.
The Way Ahead
Although the hotel market has dropped quite considerably in San Jose, plans are in place to drag the hotel industry back up to profitability in the next few years. This slump is causing lots of hotels to try new things to bring the market back. The hotel market at the moment is booming with buyers seeing the future for hotels getting red hot. Even though Silicone Valley has been running behind the general increase nationwide, some of the new buyers are planning on turning the hotel into a boutique hotel in a bid to attract more visitors and with that in mind I would say that it will help attract the more discerning traveller back to Silicone Valley.
Some Guests do not want change
Some guests would prefer the hotels to stay as they are and therefore they are bound to lose some clientele, but improving the hotel will certainly appeal to a bigger spectrum of clients and therefore make the way much brighter. And this appears to be the trend for a lot of hotels as they are sold and refurbished
Information
The Saint Clare is listed as a National Historic Landmark. And would be well worth a visit if ever you are travelling in the area.
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