Citizens Bank Lends $31M for Construction of a Hilton in San Jose, Calif.
Citizens Bank has provided $30.5 million to Belmont, Calif.-based Westlake Realty Group to construct a Hilton Garden Inn in San Jose, Calif., Commercial Observer can first report.
Construction on the planned 150-key branded hotel is set to begin sometime in the first quarter, according to information from Citizens Bank.
The property will be located at 111 East Gish Street in San Jose, just a few blocks away from the Norman Y. Mineta San Jose International Airport. With its proximity to the airport, the development is surrounded by hotels, including a Holiday Inn San Jose and a Wyndham Garden San Jose Airport.
Since 2016, hotel market fundamentals have stabilized, with microeconomic indicators such as total employment and real personal income nearly running parallel to RevPAR (revenue per available room), according to a fourth quarter 2018 report from CBRE.
Nationally, hotel demand climbed 2.5 percent in the fourth quarter, up from 1.6 percent the previous quarter, while supply growth maintained at 2 percent, as per CBRE’s report.
Lenders and brokers who’ve spoken to CO say the current hotel market is extremely liquid, with an overabundance of capital mostly available for branded hotel construction and refinancings.
Westlake Realty did not immediately respond to an inquiry.