Bay Area/ San Jose

WeHope Takes Over Troubled Arena Hotel In San Jose

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Published on November 05, 2025
WeHope Takes Over Troubled Arena Hotel In San JoseSource: Google Street View

WeHope, a Bay Area nonprofit, will take over operations at the Arena Hotel at 817 The Alameda in San Jose starting Dec. 1, replacing HomeFirst as the site's service provider. The low-barrier, 89‑room conversion currently houses roughly 97 residents, many of whom moved in when the hotel opened in August 2023. City officials say WeHope will temporarily handle case management, property operations, and meals while the Housing Department seeks a longer-term operator.

Residents Hope For Faster Housing

Some residents said they expect WeHope to expedite placements and provide more consistent casework at the site. “I’m super excited to see what happens, to see what their first day is going to look like,” Arena Hotel resident Chris Wess told San José Spotlight. The outlet reported the hotel has faced complaints about broken elevators, past food‑safety incidents, and uneven case management since its conversion.

Short-Term Contract Details

The City Council approved a grant allowing the Housing Director to execute an agreement with WeHope for up to $2.7 million, retroactive to Oct. 1 and running through June 30, 2026, according to the City of San José City Council agenda. The staff memorandum states that WeHope will provide social services and meals, property and asset management, and on-site security, either directly or through subcontracts. City staff describe the award as the first step in repositioning the property while they pursue subsidy layering and a long-term redevelopment partner.

Why HomeFirst Stepped Back

HomeFirst told reporters it declined the city’s offer to continue operating the Arena Hotel so it could focus on two tiny‑home village projects, Cherry and Cerone. The nonprofit said it has moved 52 hotel residents into permanent housing since the site opened in August 2023 and that its case managers have conducted nearly 6,000 on-site sessions, the reporting found. HomeFirst added it remains committed to “consistent, quality case management,” the spokesperson told San José Spotlight.

WeHope's Track Record

WeHope operates the Berryessa safe-parking program and other mobile services in the region, and its materials emphasize 24/7 security, professional case management, and wraparound services designed to help people move into housing quickly. The organization states that the Berryessa site reached capacity soon after opening and offers classes, healthcare access, and food assistance as part of its model. Details about those services are provided on WeHOPE's website.

What Comes Next

The Arena Hotel opened as a Project Homekey conversion in August 2023, following the city's securing of state Homekey funding and local Measure E support. A city announcement noted a $25.2 million Homekey award toward the purchase. Local reporting and city documents indicate that the project's combined public investment is approximately $46 million and that longer-term plans envision replacing the hotel with up to 200 permanent affordable apartments. The Housing Department says WeHope workers will shadow HomeFirst staff for two weeks to ease the handoff and that the department will monitor outcomes quarterly while it pursues a permanent operator and redevelopment partner, per the city and local reporting.

San Jose's 2025 point-in-time count revealed approximately 6,503 people experiencing homelessness across the city, a fact that city leaders cite when discussing the need to stabilize interim sites while expanding permanent housing options. City of San José and Local News Matters provide background on funding and the city's longer-term housing goals.