SAN JOSE — A resort alongside a light-weight rail line in San Jose has landed native consumers, a reminder that some resort gross sales are being accomplished within the face of a feeble Bay Space lodging market.
Caravelle Inn & Suites, a resort at 1310 North First Road in San Jose, was bought for $3.8 million, in keeping with paperwork filed on Sept. 2 with the Santa Clara County Recorder’s Workplace.
The 50-room resort is 2 tales and is close to the interchange of Interstate 880 and North First Road.
The San Jose-based possession group, which operates as District Eleven LLC, purchased the property by way of an all-cash deal, the county data present.
This transaction marks one of many few resort purchases within the Bay Space up to now in 2023 — and one of many only a few in Santa Clara County.
Through the first six months of 2023, solely eight resorts have been purchased within the Bay Space, together with two in Santa Clara County, in keeping with a survey by Atlas Hospitality Group, which tracks the lodging market in California.
Of the 2 resorts that have been purchased in Santa Clara County, one was the Enviornment Resort, which was bought for $22.9 million, Atlas Hospitality reported. This buy was a part of a course of to transform the constructing right into a lodging for homeless people.
The opposite resort deal in Santa Clara County in the course of the first half of this 12 months was the acquisition of the Consolation Inn and Suites at 1510 North First Road in San Jose, which was purchased in a $6 million deal, in keeping with Atlas Hospitality.
The variety of resorts offered in California in the course of the first half of 2023 plunged by 52.9% in contrast with the primary six months of 2022, Atlas Hospitality Group reported.
In 2009, on the tail-end of the final recession, resort gross sales in California tumbled 51%.
Each Northern and Southern California suffered large declines within the variety of resorts offered, Atlas Hospitality reported.
Northern California endured a 44.6% plunge in particular person resort gross sales — particularly, 62 resorts have been offered on this area within the first half of 2023 in contrast with 112 over the primary half of 2022.
Southern California suffered a 58.9% nosedive within the variety of resorts offered. An estimated 62 resorts have been offered in that area over the primary six months of 2023 in contrast with 151 within the first half of 2022.
“We’ve seen nothing like this, nothing this unhealthy,” Alan Reay, president of Atlas Hospitality, mentioned in an interview with this information group in August in reference to the report’s launch, referring to the plunge in resort gross sales exercise.