San Jose DoubleTree Hotel Up for Sale

The DoubleTree by Hilton in San Jose is the latest Bay Area hotel to go up for sale.

The 505-room property, at 2050 Gateway Place near San Jose International Airport, is on the market for an undisclosed amount, The Mercury News reported. Park Hotels & Resorts owns the hotel through an affiliate and Eastdil Secured is marketing the property.

Neither owner nor realtor has revealed a sale price, but in January 2024, the hotel had an assessed value of $92.6 million.

Park Hotels & Resorts is offloading the property after halting payments on a $725 million loan that had two San Francisco hotels — the 1,921-room Hilton San Francisco Union Square and the 1,024-room Parc 55 San Francisco — as collateral. Those two properties alone make up 20 percent of San Francisco’s entire hotel stock.

The DoubleTree listing is the latest evidence of Park Hotels & Resorts’ financial difficulties. Last month, Park Hotels & Resorts sold the 316-room Hyatt Centric Fisherman’s Wharf in San Francisco for $80 million. And last June, the Virginia-based real estate investment trust shuttered its Hilton Oakland Airport Hotel and laid off more than 150 employees.

Hotels in the Bay Area have been buckling under pressure with loan defaults and foreclosures.

Last month, a BrightSpire Capital affiliate seized ownership of the 541-room Signia by Hilton hotel at 170 South Market Street in downtown San Francisco. That foreclosure placed the hotel’s value at $80 million — a 41 percent dip from the $134 million loan the company initially issued.

Meanwhile, Kubera’s 113-room University Inn & Suites at 290 University Avenue in Berkeley went into foreclosure last month. That property’s estimated value has also plummeted in recent years, to $12 million from $21.8 million in 2019.

Last summer, the dual-branded AC Hotel and Residence Inn by Marriott in downtown Oakland defaulted on a $112 million loan after a year of operation. The property, at 431 Jefferson Street, went into foreclosure in April. A few months earlier, the Oakland Marriott City Center defaulted on a $100 million loan.

— Chris Malone Méndez