{"id":336587,"date":"2026-05-28T22:31:24","date_gmt":"2026-05-28T22:31:24","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/336587\/"},"modified":"2026-05-28T22:31:24","modified_gmt":"2026-05-28T22:31:24","slug":"another-bay-area-hotel-flops-into-loan-default","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/336587\/","title":{"rendered":"Another Bay Area Hotel Flops Into Loan Default"},"content":{"rendered":"

Another Bay Area hotel has fallen into default as the area\u2019s lodging sector navigates widespread distress<\/a> in the post-pandemic years.\u00a0<\/p>\n

The La Quinta Inn & Suites at 1036 North Fourth Street in San Jose is now in default on a $16 million loan, the Mercury News reported<\/a>. Los Gatos-based Milanben Patel and Anil Patel are the principal managers of the entity that owns the 59-room hotel, according to state business documents cited by the Mercury News.\u00a0<\/p>\n

Central Valley Community Bank provided the owner with a construction loan in 2019, which is now delinquent. The hotel was completed in 2023 and now faces foreclosure if the owner is unable to repay the lender in full.\u00a0<\/p>\n

The La Quinta location in San Jose joins a growing list of hotel properties in the Bay Area<\/a> that have grappled with falling property values, loan defaults and foreclosures. The distress streak started in 2023 with the foreclosure of the Huntington Hotel in San Francisco at $29.3 million, representing a significant tumble from its $86.7 million assessed value, according to the Mercury News. Since then, hotels and motels from San Francisco and Oakland to Silicon Valley have faced similar woes.\u00a0<\/p>\n

In San Jose, the 541-room Signia by Hilton hotel<\/a>, the largest in the city, was taken back by its lender last May through a foreclosure that valued the hotel at $80 million. The following month, a Motel 6 and Super 8<\/a> by Wyndham in San Jose defaulted on a $21.7 million loan. Elsewhere in Silicon Valley, earlier this spring, the Wild Palms Hotel in Sunnyvale and Hotel Avante in Mountain View received notices of default<\/a> demanding payment in full for a $54.1 million loan.\u00a0<\/p>\n

Last year, 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<\/a> for $408 million, representing a 75 percent dropoff in the properties\u2019 values. In Oakland, the 500-room Oakland Marriott City Center was seized by its lender last year in a $70.2 million foreclosure of a delinquent loan. Soon thereafter, the 172-room Moxy Oakland Uptown hotel fell into default<\/a> on a $35 million loan. The Moxy Oakland Uptown has since closed its doors<\/a>.\u00a0\u2014 Chris Malone M\u00e9ndez<\/p>\n

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Court approves sale of SF hotels after $725M loan default\u00a0<\/p>\n

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Bay Area hotel defaults pile up with two more Silicon Valley properties<\/p>\n

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San Jose hotel falls into default amid Bay Area lodging woes\u00a0\u00a0<\/p>\n

\t\t\t<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Another Bay Area hotel has fallen into default as the area\u2019s lodging sector navigates widespread distress in the…\n","protected":false},"author":2,"featured_media":336588,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[138967,88,90,89],"class_list":["post-336587","post","type-post","status-publish","format-standard","has-post-thumbnail","category-san-jose","tag-bay-area-hotel-defaults","tag-san-jose","tag-san-jose-headlines","tag-san-jose-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/336587","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=336587"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/336587\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/336588"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=336587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=336587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=336587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}