It is very tumultuous times for hotels and operators that loaded up on debt before Covid-19 and now are unable to service it.,,Fairmont San Jose is the latest victim. The hotel filed for bankruptcy protection on Friday and immediately closed its doors while trying to restructure the debt and find a new operator.
,You can access Fairmont San Jose’s website
here.,,Conclusion,Many hotels cannot service their debts, and some owners may find it easier to hand back the keys to the lenders and let them sort the mess out. Many lenders are trying to avoid defaults by extending loans to keep doors open.,\There is very little need right now for convention hotels with 800+ rooms, considering that most Silicon Valley companies that this hotel must have served are working “virtually.”,There will be management change at this hotel, and it is unlikely that it will reopen as Fairmont. It is interesting to see what brand will take over this monstrous hotel.,