As mentioned at the beginning of the month, an investor group including Lew and Keith Wolff has purchased the Hotel Sainte Claire in Downtown San Jose from Larkspur Hotels and Restaurants. The final price is reportedly under $18 million ($105,000 per room), a major discount from the market value of $34-42 million ($250-300,000 per room) for the 171 room, boutique hotel.
If, as I speculated then, the purpose of the acquisition was to redo the hotel to host visiting MLB teams, buying the place for only $18 million leaves a pretty nice budget available to turn the place into a five-star joint, if the investment group were interested in doing so. I had also heard that certain unnamed MLB executives are in the investment group, which would make it seem like baseball has a vested interest in having the hotel succeed along with a ballpark in downtown San Jose. For his part, Wolff told reporter George Avalos that the purchase has nothing to do with the A’s potentially moving south. Wolff’s group also owns the nearby Fairmont, and a few years back sold the Hilton next to the convention center.
Wolff also had a curious quote:
“Cities like San Jose and Oakland are in the path of growth,” said Wolff, a principal executive with Los Angeles-based Wolff Urban Development, in explaining some of the reasons behind the purchase. “San Jose has a fairly strong downtown.”
Interesting that Wolff is working hotel deals in San Jose, but not Oakland. Perhaps a move in Oakland is in the future?