220-Room Hotel Proposed In Downtown San Jose
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KT Urban has proposed a high-rise hotel in downtown San Jose, blocks away from the future Google transit village and Adobe Systems campus. The 11-story, 220-room hotel would be built at a vacant parcel at 8 North Almaden Blvd. at West Santa Clara Street, the East Bay Times reports. The hotel would be next to Hotel De Anza and across from AC Hotel.
Investor activity has increased in San Jose for not just hospitality assets, but also for office and multifamily assets following Adobe and Google’s expansion plans in San Jose. Google plans to build a transit-oriented campus with 15,000 to 20,000 employees and Adobe plans to build a fourth tower.
In December, Eagle Canyon Capital bought the 805-room Fairmont Hotel for $223.5M and Aju Hotel San Jose sold its Holiday Inn in San Jose at 1350 North First St. for a 15% return. During the summer, Aju Hotels bought the Westin San Jose for $64M.
Hotel occupancy in Santa Clara County was about 75% during the first quarter, up 0.4% year over year. Daily room rates were about $200, an increase of 4.4% year over year, the East Bay Times reports.
KT Urban also has plans to develop four high-density multifamily and mixed-use projects around downtown San Jose, including over 700 condos within two towers at a Greyhound bus station.