{"id":348657,"date":"2026-06-05T22:20:11","date_gmt":"2026-06-05T22:20:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/348657\/"},"modified":"2026-06-05T22:20:11","modified_gmt":"2026-06-05T22:20:11","slug":"another-san-jose-hotel-falls-into-default","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/348657\/","title":{"rendered":"Another San Jose Hotel Falls Into Default"},"content":{"rendered":"

Yet another San Jose hotel has flopped into loan default as the Bay Area\u2019s lodging market navigates an ongoing period of distress.\u00a0<\/p>\n

The 52-room Fontaine Inn in east San Jose is in default on a $6.5 million loan, Mercury News reported<\/a>, citing documents filed on Wednesday with the Santa Clara County Recorder\u2019s Office. The property at 2460 Fontaine Road is owned by a group led by business executive Bharat Patel. State Bank of Texas is the lender and filed the loan default notice.\u00a0<\/p>\n

The Fontaine Inn is coincidentally two doors down from a 204-room hotel complex at 2560 Fontaine Road that is also in default. The Motel 6 and Super 8 by Wyndham face foreclosure due to the delinquent $21.7 million property loan. Another Super 8 by Wyndham<\/a> in Livermore defaulted on a $7.7 million State Bank of Texas loan in 2022. That property has the same real estate executive owner as the dual Motel 6 and Super 8 by Wyndham property in San Jose who has since filed for bankruptcy.\u00a0<\/p>\n

Hotels from San Francisco and Oakland down south to San Jose and Los Gatos have been confronting loan defaults and looming foreclosures<\/a> in recent years. Elsewhere in San Jose, last year, the 541-room Signia by Hilton hotel, the largest in the city, was taken back by its lender<\/a>. Last week, the 59-room La Quinta Inn & Suites<\/a> in San Jose, which opened three years ago, defaulted on a $16 million Central Valley Community Bank loan.<\/p>\n

Earlier this spring in nearby Los Gatos, Denver-based KSL Capital Partners purchased the distressed Toll House Hotel<\/a> through a deed-in-lieu of foreclosure. The unpaid debt linked to the Toll House was $30 million at the time of foreclosure<\/a> proceeding, though KSL Capital did not pay more than that amount to take over the property.\u00a0\u2014 Chris Malone M\u00e9ndez<\/p>\n

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

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Kalthia Group buys another San Jose hotel as Bay Area lodging market navigates defaults, foreclosures<\/p>\n

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San Jose La Quinta latest Bay Area hotels in default\u00a0<\/p>\n

\t\t\t<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Yet another San Jose hotel has flopped into loan default as the Bay Area\u2019s lodging market navigates an…\n","protected":false},"author":2,"featured_media":348658,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[88,90,142733,89],"class_list":["post-348657","post","type-post","status-publish","format-standard","has-post-thumbnail","category-san-jose","tag-san-jose","tag-san-jose-headlines","tag-san-jose-hotels","tag-san-jose-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/348657","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=348657"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/348657\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/348658"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=348657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=348657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=348657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}