SAN JOSE — The historic Hotel De Anza in downtown San Jose has been bought at a price that’s roughly half of what it was previously worth, a grim new sign of the weakness in the lodging market.
Hotel De Anza was bought for $11.5 million, according to documents filed on Oct. 29 with the Santa Clara County Recorder’s Office.
An ownership group headed up by Dhaval Panchal, whose family owns hotels in the Bay Area, bought the 10-story historic hotel at 233 West Santa Clara Street in downtown San Jose.
The $11.5 million purchase price is 43.6% below the $20.4 million that an affiliate of Lowe’s Enterprises paid in 2014 for the historic highrise.
Even worse, the price is 54% below the hotel property’s value of $25.2 million in January 2024, as the Santa Clara County Assessor’s Office estimated.
The purchase price is also about 63% below what investors were willing to pay before the coronavirus outbreak in 2020.