Big hotel offers downtown San Jose economic boost, jobs, meeting hub
SAN JOSE >> A landmark San Jose hotel that closed its doors for more than a year is poised to again be an economic sparkplug, job creator and hub for business meetings, officials and executives say.
Signia by Hilton put out the welcome mat with a ribbon-cutting ceremony May 18 to formally mark the reopening of the former Fairmont hotel, which was forced into bankruptcy and a coronavirus-linked shutdown but is now ready to again be a focal point of downtown's economic vitality.
The reopening also symbolizes the rebirth of downtown San Jose, in the view of San Jose Mayor Sam Liccardo.
Coronavirus-linked economic jolts battered downtown, which is just now starting to recuperate.
“This city can be reborn and rise above the adversities of our time,” Liccardo said during the ceremony. “This hotel supports our faith in the resurrection of our city.”
The hotel closed in March 2021 and reopened in April of this year, a shutdown that ousted workers from their jobs at the former Fairmont. Now, jobs are returning as the hotel ramps up operations.
“We have over 100 people working here right now,” Jimmy Sarfraz, general manager with the Signia by Hilton San Jose, said in an interview. “Our labor partners have been very helpful in getting our team members back to work.”
On May 18, guests mingled in the lobby, a welcome counterpoint to months of inactivity while the hotel battled through a bankruptcy proceeding to reorganize and revamp its shattered finances.
“It's great to see a room full of people enjoying themselves and celebrating and embracing human connections again,” said Catherine Hendricks, the hotel's director of sales and marketing.
Guided by Sam Hirbod, the hotel's principal owner, the facility underwent a dramatic renovation in early 2021 that transformed the look and feel of the main gathering areas.
“I wanted to reposition this hotel so that the passion, the faith that we have in this city would manifest itself in a spirit of hospitality,” Hirbod said. “Our goal is to deliver the very best that hospitality has to offer.”
The 805-room hotel consists of two towers and management has placed guests in the smaller southern high-rise. The south tower has 264 rooms and the north tower has 541 rooms, which are being renovated and modernized. As those upgrades are completed, rooms there are expected to reopen floor by floor.
More jobs are slated to be added to the hotel payroll as rooms, restaurants and amenities such as the pool and cabana section reopen.
“These last two years have been tremendously difficult for our downtown,” City Council member Raul Peralez said. “This is a tremendous shot in the arm.”
The onset of the pandemic chased away business and leisure travelers and devastated the worldwide lodging and travel sectors.
“The opening for us is making a statement to the world, a statement to California that meetings are back,” said Gary Steffen, global head for Hilton's fullservice brands. “Groups and meetings are back.”
The coronavirus wrecked business travel in particular. Hilton executives who attended the ceremony said they're seeing signs of a turnaround.
“We are starting to see more demand from our corporate group segment and our individual business travelers,” said Keith Clampet, senior vice president for hotel operations at Hilton Worldwide. “Growth is really starting to take off.”
The fledgling job boom at the hotel is an encouraging start for the hotel's rebound, the mayor said.
“It's great to see 100 more families to be able to support themselves and put more food on the table,” Liccardo said in an interview.
For decades, the hotel has been a mainstay of economic activity in San Jose. The Fairmont opened in 1987 and was a key component in the city's decadeslong quest to revitalize its downtown. After a 13-month shutdown, it appears the Signia by Hilton hotel is poised to resume that role, said Scott Knies, executive director of the San Jose Downtown Association.
“Since it opened in 1987, this hotel has been the symbol of San Jose's rebirth as a big city,” Knies said. “After the hotel closed, there was an energy void. Now that void is filled.”