San Jose

Crane Watch Update: Proposals for More Than 4,000 Hotel Rooms Have Piled Up in San Jose’s Tight Market

Silicon Valley Business Journal
10/18/18

Crane Watch Update: Proposals for More Than 4,000 Hotel Rooms Have Piled Up in San Jose’s Tight Market
By Janice Bitters

https://www.bizjournals.com/sanjose/news/2018/10/18/crane-watch-update-proposals-for-more-than-4-000.html
In Silicon Valley, where business travelers come from all over the globe to work with the biggest tech companies in the world, hotel rooms have become a hot commodity — particularly on weekdays.

Developers are responding to the demand, according to recent data compiled by the Silicon Valley Business Journal for our Crane Watch project, which tracks and maps projects spanning 90,000 square feet in size or greater throughout San Jose. That data shows more than 4,030 hotel rooms are in the city’s pipeline, meaning they have been recently proposed, are currently entitled to be built, are under construction or just completed.

Of those rooms, however, only a fraction have actually broken ground. The Business Journal has tallied only 1,389 hotel rooms in San Jose that are currently under construction or very recently completed.

Take a look through the slideshow above to see some of the hotels that have been proposed or are under construction in the city currently.

Though the Business Journal is currently only tracking the city of San Jose via Crane Watch, it’s worth noting that industry data shows the entire county is responding to the hotel demand in the Valley. In Santa Clara County, for instance, four hotels with nearly 580 rooms opened in 2017, according to Atlas Hospitality. The largest of those was the 210-room AC Hotel by Marriott in downtown San Jose.

To learn more about all of the major development projects — residential, commercial, mixed-use and more — in San Jose’s development pipeline, explore the Silicon Valley Business Journal’s Crane Watch map.

Meanwhile, 56 hotels that could add about 9,453 rooms were in the planning phase as of late last year throughout the county, Atlas data shows.

Alan Reay, president at Atlas Hospitality Group, told the Business Journal in an interview late last year that even if all those hotels in the pipeline came to fruition, it wouldn’t likely dampen demand, room rates or property sale prices in Silicon Valley.

“I think there’s been such a shortage in the Bay Area for such a long time, we are only now starting to catch up with all the supply that wasn’t added in the last 10 years,” he said. “What I see under construction, I think can easily be absorbed.”

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