UPDATED AUG. 27, 2024 at 2:10 p.m.:
The historic Hotel De Anza in Downtown San Jose could sell for as little as $10 million, half of what it traded for a decade ago.
A potential deal for the 100-room Art Deco landmark at 233 West Santa Clara Street is looming, even as the lodge prepares to reopen after months of closure, the San Jose Mercury News reported, citing unidentified sources. Neither the seller nor the would-be buyer were identified.
The purchase price is between $10 million and $12 million, or between $100,000 and $120,000 per room, according to the sources. Before the pandemic, bidders offered as much as $30 million, or $300,000 per key.
Newmark’s Lodging Capital Markets division holds the listing. The brokerage had listed the 93-year-old hotel in September 2022, hoping to fetch as much as $35 million.
The property is managed by Hyatt Hotels, based in Chicago.
In January, the value of the hotel property was $25.2 million, according to the Santa Clara County Recorder’s Office.
The Hotel De Anza, known for its glowing rose neon rooftop sign, is a signature landmark for the South Bay city.
The hotel abruptly closed in May, citing “unexpected maintenance.” One hotel worker said the closure was linked to water damage, according to the Mercury News.
The Jazz Age hotel is slated to reopen Oct. 1, according to its website.
The 10-story hotel opened in 1931 at the behest of business leaders who wanted to transform the reputation of a town then known for cherry and plum orchards.
The Zig Zag Moderne hotel, designed by W.H. Weeks, features a zig-zag parapet, a two-story lobby and a wrought-iron chandelier and balconies. A 25-foot mural of a woman diver nicknamed The Diving Diva has graced its west-facing wall since 1951.
The hotel that once drew the likes of First Lady Eleanor Roosevelt, boxing great Jack Dempsey and jazz icon Cab Calloway was almost demolished in the 1970s, then saved by the city’s redevelopment agency.
In 1982, it was added to the National Register of Historic Places. Four years later, it was renovated by Barry Swenson, grandson of the hotel’s builder, Carl Swenson. In 2015, the hotel completed a major renovation of its guest rooms, meeting spaces and common areas.
Correction: Previous story stated the seller as Lowe Enterprises. A spokeswoman for the company told TRD in an email that “Lowe does not own or operate the Hotel De Anza,” although its former affiliate, Lowe Enterprises Investors, was previously involved with the property.
— Dana Bartholomew
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