SAN JOSE – Two hotels in the Bay Area that have gone bankrupt have brought shoppers to deals that could put them back on solid financial footing as coronavirus-related economic troubles subside.
The hotels are among the 18 hotels in the U.S. – including the world-famous Queen Mary Hotel, which has moored in Long Beach Harbor – that Singapore-based Eagle Hospitality Trust has tried to sell to raise funds as part of the real estate corporate capital . 11 Bankruptcy.
Two different buyers have made separate offers to buy 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., San Jose. The Holiday Inn Hotel and 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 winning bidder for the Four Points by Sheraton in northern San Jose.
Monarch Alternative Capital, a New York City-based investment and finance company, is the winning bidder for the Holiday Inn Hotel & Suites on the peninsula.
The Holiday Inn is being bought by Monarch Alternative as part of an acquisition package, so the expected purchase price has not been shown separately. The total bid for the package of nine hotels that Monarch is buying was $ 326.5 million. This is evident from documents filed with the US bankruptcy court.
Four Points from Sheraton went for an offer price of $ 41.4 million, according to bankruptcy court records. Experts say the price is in line with a hotel of this size.
The bankruptcy court must approve the winning bids before the bidders can officially take ownership of the hotel properties.
According to court records, the winner of the northern San Jose hotel has both the expertise and the financial resources to operate.
“Beach Point has more than $ 16 billion under management,” the court records said. “The Beach Point managed or advised funds and accounts that would participate in this investment had cash balances in excess of $ 500 million as of April 30, 2021.”