Owner of hotels in South Bay files for bankruptcy.
SAN JOSE >> The owner of two Bay Area hotels, one in San Jose and one in San Mateo, has filed for bankruptcy, grim new evidence of the widening economic woes the lodging industry faces while the coronavirus rages on.
Eagle Hospitality Trust, which owns 18 hotels in the United States, including eight in California — the world-famous Queen Mary Hotel in Long Beach among them — has filed for a Chapter 11 bankruptcy in an attempt to reorganize its finances.
Four Points by Sheraton San Jose Airport and Holiday Inn Hotel & Suites in
San Mateo are among the hotels owned by Eagle Hospitality Trust, according to company documents and bankruptcy court records.
Eagle Hospitality said 27 subsidiaries, formally known as corporate entities, were involved in the bankruptcy filing and that it’s possible buyers could be found for some or all of the 18 hotels.
“The Chapter 11 entities intend to commence a marketing process to sell the relevant hotels,” Eagle Hospitality said in a release that announced the bankruptcy filing.
Four Points by Sheraton is a 196-room hotel at 1471 N. Fourth St. in San Jose, while Holiday Inn Hotel & Suites has 220 rooms and is located at 330 N. Bayshore Blvd. in San Mateo.
One high-profile hotel caught up in the Eagle Hospitality bankruptcy: The Queen Mary Hotel, a historic floating lodging docked in Long Beach.
Eagle Hospitality’s filing suggests that problems in the hotel sector, which has been battered by the coronavirus, continue to worsen, according to Alan Reay, president of Irvinebased Atlas Hospitality Group, which tracks the lodging market.
“This is an early indicator of the problems facing the hotel industry in 2021,” Reay said.