Ho­tel

The Mercury News Weekend - - DATA - Con­tact Ge­orge Ava­los at 408-859- 5167.

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.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.