Bankrupt San Jose, San Mateo Hotels Find Buyers – Lake County Record-Bee
SAN JOSE – Two Bay Area hotels that have been mired in bankruptcy have landed buyers in deals that could put them back on solid financial footing as economic hardships over coronaviruses abate.
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 supply for all nine hotels Monarch is purchasing 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. 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 formally take ownership of the hotel properties.
The successful bidder for the North San Jose hotel is deemed to have both the expertise and the financial strength to operate, according to court records.
“Beach Point has over $ 16 billion in assets under management,” court records show. “The funds and accounts managed or advised by Beach Point that would participate in this investment had an aggregate cash balance greater than $ 500 million as of April 30, 2021.”