{"id":1190,"date":"2026-06-04T15:39:39","date_gmt":"2026-06-04T15:39:39","guid":{"rendered":"https:\/\/nextcitydigest.com\/?p=1190"},"modified":"2026-06-04T15:39:39","modified_gmt":"2026-06-04T15:39:39","slug":"bay-area-lodging-woes-persist-as-san-jose-hotel-suffers-loan-failure","status":"publish","type":"post","link":"https:\/\/nextcitydigest.com\/?p=1190","title":{"rendered":"Bay Area lodging woes persist as San Jose hotel suffers loan failure"},"content":{"rendered":"<div>\n<div>\n<p>SAN JOSE \u2014 A loan default has jolted a San Jose hotel, a setback that threatens the property with foreclosure and serves as a reminder of the Bay Area hospitality industry\u2019s already murky outlook.<\/p>\n<p>Read more <a href=\"https:\/\/nextcitydigest.com\/?p=1188\">Teen dead, 3 people injured in shooting at Bay Area high school graduation ceremony<\/a><\/p>\n<p>The Fontaine Inn, a 52-room hotel in east San Jose, is in default on a $6.5 million real estate loan, documents filed on June 3 with the Santa Clara County Recorder\u2019s Office show.<\/p>\n<p>The Bay Area hotel industry is being swamped by waves of loan defaults, plunging values and foreclosures as the sector seeks to gain its footing in the wake of the COVID-19 pandemic that rattled the worldwide lodging and travel sectors.<\/p>\n<p>The lodging hub is located at 2460 Fontaine Road and is owned by a group headed up by business executive Bharat Patel, according to county real estate records.<\/p>\n<p>Read more <a href=\"https:\/\/nextcitydigest.com\/?p=1186\">San Mateo County Fair opens Friday with concerts, drone shows, duck races<\/a><\/p>\n<p>State Bank of Texas is the lender for the hotel and filed the loan default notice, county documents show. The hotel is near the interchange of U.S. Highway 101 and Tully Road.<\/p>\n<p>By happenstance, the Fontaine Inn is about a block away from a 204-room hotel complex at 2560 Fontaine Rd. that also faces foreclosure due to a delinquent property loan. The lodging hub consists of a Motel 6 and a Super 8 by Wyndham.<\/p>\n<p>A group led by real estate executive Jagmohan Dhillon has filed for bankruptcy in connection with a failed $21.7 million loan for the hotels at 2560 Fontaine, federal court records show.<\/p>\n<p>Read more <a href=\"https:\/\/nextcitydigest.com\/?p=1184\">Murder arraignment in California \u2018Trump House\u2019 death postponed after jailed suspect refuses to attend hearing<\/a><\/p>\n<div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A loan default has jolted a San Jose hotel, a setback that threatens the property with foreclosure and serves as a reminder of the Bay Area hospitality industry&#8217;s already murky outlook.<\/p>\n","protected":false},"author":1,"featured_media":1189,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1190","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - 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