also moving into north San Jose.
“You still have a tremendous amount of tech companies in growth mode in San Jose and other parts of Silicon Valley,” Patel said.
The proposed hotel would be next to a Topgolf entertainment venue in north San Jose.
Topgolf operates hightech driving ranges that allow people to hit golf balls equipped with microchips that record distance and accuracy. The venues typically also include dining and drinking establishments. The company says it hopes to break ground soon and open sometime in 2019.
“The whole development is an entertainment district,” said Morgan Schaaf, a spokeswoman for Topgolf.
The Shilla Stay hotel could prosper if it manages to open sometime in the next few years because the economy remains robust. And, in turn, that means the outlook for room rates and occupancy levels could remain favorable.
“Occupancy rates and room rates, while not in- creasing at the same level as recent years, will still improve in Silicon Valley,” Patel said. “We see increases in the low single digits for occupancy and rates in 2019.”
Plus, the ongoing tech growth in the region, which has added jobs at a rapid pace, also bodes well for hotels in San Jose and other parts of the South Bay.
“The growth mode will continue to generate business travel throughout Silicon Valley, which means more demand for hotel rooms,” Patel said.