A San Jose hotel struggling during the pandemic declared bankruptcy and kicked out all of its guests, including an NHL team
- The Fairmont in San Jose declared bankruptcy on Friday and kicked all of its guests out.
- The hotel paid for alternative accommodation for guests, including NHL team the Las Vegas Knights.
- Fairmont management told local news outlets it was projected to lose at least $20 million in 2021.
- Visit the Business section of Insider for more stories.
An 800-room hotel in San Jose, California declared bankruptcy on Friday and kicked out all of its guests, local news outlets reported.
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The city’s Fairmont Hotel closed after a Chapter-11 filing.
The hotel lost at least $18 million in 2020 during the pandemic, and is projected to lose at least another $20 million in 2021, its owners told The San Francisco Chronicle.
Management told its guests to leave, but the Fairmont paid for them to stay at nearby hotels, it told the publication.
This included NHL team the Las Vegas Knights. The team were in the city to play against local team the San Jose Sharks, and were asked to leave their room shortly before the first of two games.
“I think that’s a first for probably everybody on our team,” Nick Holden, the team’s defenseman, told the Associated Press. The players were told to bring their belongings with them to the game, and moved to a new hotel after the game.
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All hospitality staff, including hotel management, were laid off on Friday, hotel representative Sam Singer told The Chronicle.
Read more: How hotels like Marriott and Wynn Resorts are working to jumpstart their gutted group travel businesses
Throughout the pandemic, the hotel’s occupancy has been less than 7%, Singer said.
The 20-story hotel expects to reopen in 60 to 90 days with a new management partner, Singer added.
Its website doesn’t say that the hotel is closed, but it doesn’t let customers book rooms.
The hotel has 805 rooms and suites, as well as three restaurants and a cafe. It also has 65,000 square feet of function space, a gym, and a rooftop pool.
As the US continues to vaccinate its populations against the coronavirus, hotels are preparing to bring guests back. Some Marriott hotels are offering on-site testing, temperature checks, and health questionnaires for groups planning events at their hotels, while Wynn Resorts is building a COVID-19 testing lab at its properties in Las Vegas, Insider’s Madeline Stone reported.
Marriott expects the COVID-19 trend of longer vacations to stay, and is opening 575 new locations under its “longer stay” brands. The hotels will offer bigger rooms alongside extra amenities, including work centers, WiFi, breakfast, and gyms, Insider’s Brittany Chang reported.
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