Fairmont Hotel in downtown San Jose slated for $250 million sale
SAN JOSE — Downtown San Jose’s Fairmont Hotel is slated to sell during 2018, one of the principal owners of the iconic lodging complex said Friday evening.
The 805-room hotel tower is expected to be bought by Eagle Canyon Capital, a San Ramon-based firm, said Lewis Wolff, a principal executive with Maritz, Wolff, a realty investment firm that is the primary owner of the high-rise hotel.
“We have had the Fairmont San Jose for a long time and we have done very well there,” Wolff said Friday. “We have had some softer times and better times with it .It’s been a lot of fun. This hotel is an icon.”
The Fairmont, whose 22-story tower opened in 1987, was one of the key components in a decades-long quest by San Jose city and business leaders to bring more activity into the downtown area.
Wolff and his partners bought the Fairmont in 1996, at a time when the hotel was confronted with financial woes.
“The Fairmont San Jose had fallen on bad times that affected a lot of other Fairmont properties, but we stepped in with a crown prince from Saudi Arabia and bought the hotel,” Wolff said. “We managed to buy the hotel and closed the purchase just about the day before it would have gone into foreclosure.”
Along the way, the Wolff partnership added a 13-story, 264-room annex to the Fairmont San Jose.
“The market did so well that we decided to add those rooms across the way,” Wolff said.
The annex opened in 2002.
“The Fairmont is a pretty good brand,” said Oliver Shah, an executive vice president with Atlas Hospitality Research, which tracks the lodging market. “It’s not as highly rated as Ritz-Carlton, Four Seasons or Shangri-La, but Fairmont is a very good brand.”
According to Wolff, the sellers and the buyers have signed a contract that will lead to a completed sale. Wolff believes the new owners will carry on with efforts to keep the hotel financially strong and an attraction for guests and travelers.
“Like any other property, we put money into it, maintained it pretty well,” Wolff said. “In talking to the next owner, I believe they will have a reall commitment to make it as good and do even better than we did.”