{"id":624,"date":"2026-05-27T18:20:32","date_gmt":"2026-05-27T18:20:32","guid":{"rendered":"https:\/\/nextcitydigest.com\/?p=624"},"modified":"2026-05-27T18:20:32","modified_gmt":"2026-05-27T18:20:32","slug":"san-jose-hotel-flops-into-loan-default-in-fresh-lodging-sector-setback","status":"publish","type":"post","link":"https:\/\/nextcitydigest.com\/?p=624","title":{"rendered":"San Jose hotel flops into loan default in fresh lodging sector setback"},"content":{"rendered":"<div>\n<div>\n<p>SAN JOSE \u2014 A San Jose hotel has flopped into a default due to a delinquent loan, a financial setback that serves as a new reminder of the lingering ailments for the region\u2019s hospitality sector.<\/p>\n<p>Read more <a href=\"https:\/\/nextcitydigest.com\/?p=622\">Clarence B. Jones, who helped MLK write \u2018I Have A Dream\u2019 speech, dies at Cupertino home<\/a><\/p>\n<p>The owner of the La Quinta Inn &amp; Suites hotel in north San Jose has defaulted on a $16 million loan, documents filed on May 21 with the Santa Clara County Recorder\u2019s Office show.<\/p>\n<p>The default is a fresh example of the mortgage defaults, fading values and foreclosures that plague the Bay Area hotel market, more than six years after the onset of the COVID-19 pandemic that upended the worldwide travel and hospitality sectors.<\/p>\n<p>The 59-room hotel that\u2019s in default is located at 1036 North Fourth St. in San Jose. The delinquency means the hotel faces foreclosure if its owner can\u2019t repay the lender in full.<\/p>\n<p>Central Valley Community Bank provided the hotel\u2019s owner with the now-delinquent construction loan in 2019, according to the county real estate records.<\/p>\n<p>Los Gatos-based Milanben Patel and Anil Patel are listed as the principal managers of the business entity that owns the hotel.<\/p>\n<p>The hotel was completed in 2023, city permit documents filed with the Recorder\u2019s Office show.<\/p>\n<p>Read more <a href=\"https:\/\/nextcitydigest.com\/?p=620\">\u2018Emily in Paris\u2019 alum Pierre Deny dead after \u2018sudden and severe\u2019 ALS battle<\/a><\/p>\n<p>The lodging industry\u2019s distress has jolted hotels throughout the Bay Area in recent years, causing ailments that have afflicted hotels of nearly every size in the region.<\/p>\n<div>\n<\/div>\n<p>In 2025, foreclosures engulfed high-profile hotels in downtown Oakland, including the 500-room Oakland Marriott City Center hotel and a 276-room dual-branded hotel in the trendy Uptown district.<\/p>\n<p>San Jose\u2019s largest hotel, the 541-room Signia by Hilton in the city\u2019s downtown district, was seized by its lender in 2025.<\/p>\n<p>The current wave of woes for Bay Area hotels began in 2023 with the foreclosure of the Huntington Hotel atop Nob Hill in San Francisco at a $29.3 million price tag, which was a fraction of the hotel\u2019s $86.7 million assessed value.<\/p>\n<p>Two of San Francisco\u2019s largest hotels, the Hilton San Francisco Union Square and Parc 55, were foreclosed and then sold by a court-appointed receiver for $408 million, a 75% nosedive in the value of the two lodging towers.<\/p>\n<p>Read more <a href=\"https:\/\/nextcitydigest.com\/?p=619\">Salesforce earnings can put AI fears to bed, give stock a lift<\/a><\/p>\n<div>\n<\/div>\n<div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A San Jose hotel has flopped into a default due to a delinquent loan, a financial setback that serves as a new reminder of the lingering ailments for the region&#8217;s hospitality sector.<\/p>\n","protected":false},"author":1,"featured_media":623,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-624","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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