A North San Jose suites hotel, a short hop from Mineta San Jose International, could trade nightly check-ins for leases. A new application filed this week seeks to convert the Sonesta ES Suites into apartments, adding homes to a pocket of the city dominated by airport traffic and industrial employers.
As reported by East Bay Times, an affiliate of Hospitality Properties Trust submitted documents proposing to convert the Sonesta ES Suites at 1602 Crane Court into multifamily rental units or condominiums. The filing states that the property’s 114 suite-style rooms, spread across seven buildings, could be reconfigured into apartment layouts and that the project may require a general-plan amendment to permit residential or mixed-use development. The application names Jay Shah, Vice President of Development at Kalthia Group Hotels, as the lead on the proposal.
What’s on the site now
The Sonesta ES Suites is an all-suites property with in-room kitchens, a pool, a fitness room, and meeting space that the applicant says could be adapted for residents. The hotel is located at 1602 Crane Court in North San Jose, a short drive from Mineta San Jose International Airport and the Zanker and Bering employment corridors, according to the San Jose Chamber of Commerce directory listing. The developer’s filing suggests that those existing amenities could help reduce upfront amenity costs if the site is converted to apartments.
Affordable units on the table
The applicant told city officials it would consider an affordable-housing option, even offering “100% of the units for affordable housing” if entitlement concessions are granted, according to East Bay Times. Alan Reay, president of Atlas Hospitality Group, told the paper that converting a suites hotel to apartments makes a lot of sense, reflecting wider interest in repurposing underperforming hotels. The proposal leaves open the question of whether the homes would be rentals or for-sale condominiums.
Why owners are moving now
Bay Area hotel owners have faced a challenging market this year, with loan defaults, foreclosures, and declining valuations prompting some operators to consider alternative uses for their properties. Industry coverage also documented a large San Jose hotel hitting the sales block, underscoring owner pressure to divest, per Hotel Online.
The application will need to clear multiple layers of city review, including public notices and any required zoning changes, before conversion work can commence. Neighbors, businesses, and airport-area employers will have opportunities to weigh in as the city considers the tradeoffs between maintaining travel-oriented lodging and introducing long-term housing. The developer states that it will conduct community outreach as plans progress through the entitlement process.
