SAN JOSE – Two Bay Area hotels, one in San Jose and one in San Mateo, which have been mired in bankruptcy, have struck buyers in deals that could put them back on solid financial footing as struggles economic costs linked to coronaviruses are declining.
The hotels are among 18 hotels in the United States – including the famous Queen Mary Hotel moored in Long Beach Harbor – that Singapore-based Eagle Hospitality Trust has attempted to sell in an attempt to raise cash under of real estate. Company Chap. 11 bankruptcy cases.
Two different buyers have made separate agreements to purchase the hotels: Four Points by Sheraton San Jose Airport and Holiday Inn Hotel & Suites in San Mateo.
The Four Points by Sheraton is a 196 room hotel located at 1471 N. Fourth St. in San Jose, while the Holiday Inn Hotel & Suites has 220 rooms and is located at 330 N. Bayshore Blvd. in San Mateo.
Beach Point Capital Management, a Santa Monica-based financial services and investment firm, is the successful bidder for the Four Points by Sheraton north of San Jose.
Monarch Alternative Capital, a New York-based investment and finance firm, is the successful bidder for Holiday Inn Hotel & Suites on the Peninsula.
The Holiday Inn is being purchased by Monarch Alternative as part of a package of acquisitions, so its intended purchase price has not been broken down separately. The aggregate bid for all nine hotels Monarch is buying was $ 326.5 million, according to documents filed with the U.S. bankruptcy court.
Four Points by Sheraton has been priced at $ 41.4 million, according to bankruptcy court records. This was above the minimum bid set by the court of $ 40.9 million.
The bankruptcy court must approve the final bids before the auction winners can formally take control of the respective hotels.