The coronavirus pandemic has forced the owner of two hotels in the Bay Area, one in San Jose and one in San Mateo, to file bankruptcy after years of operation, the latest bleak evidence of economic struggles that the lodging sector is currently facing.
The Eagle Hospitality Trust group manages 18 hotels in the United States, eight of which are located in California, including the world-renowned Queen Mary Hotel in Long Beach. However, despite its capabilities, the group has decided to file a Chapter 11 bankruptcy in an attempt to reorganize its finances.
The company’s documents and bankruptcy court record showed that the Eagle Hospitality Trust also owned several other hotels, including Four Points and Holiday Inn Hotel & Suites. The group said that there were 27 subsidiaries included in the bankruptcy. Officials noted that they could find potential buyers for nearly all of the 18 hotels they owned.
“The Chapter 11 entities intend to commence a marketing process to sell the relevant hotels,” a statement by the Eagle Hospitality Trust said.
The Four Points Hotel by Sheraton San Jose Airport is located at 1471 N. Fourth Street and has 196 rooms, while the Holiday Inn Hotel & Suites is located at 330 N. Bayshore Blvd. in San Mateo and has 220 rooms.
Additionally, the historically world-famous floating cabin docked in Long Beach, the Queen Mary Hotel, is also part of the hotels swept up in the bankruptcy of the Eagle Hospitality Trust, Mercury News reported.
The group suggested in its documents that the hotel sector has been struggling amid the coronavirus pandemic, facing worsening conditions. The president of Irvine-based Atlas Hospitality Group, Alan Reay, was overseeing the monitoring of the lodging market. “This is an early indicator of the problems facing the hotel industry in 2021,” he said.