The San Jose Hotel files for bankruptcy, throws out the NHL team and all guests

  • The Fairmont in San Jose filed for bankruptcy on Friday and kicked out all of its guests.
  • The hotel paid for alternative accommodations for guests, including the Las Vegas Knights NHL team.
  • Fairmont’s management told local news outlets that at least $ 20 million should be lost by 2021.
  • You can find more stories in Insider’s business section.

An 800-room hotel in San Jose, California filed for bankruptcy Friday and kicked all of its guests out, local news outlets reported.

The city’s Fairmont Hotel was closed after a Chapter 11 filing.

The hotel lost at least $ 18 million during the pandemic in 2020 and is set to lose at least another $ 20 million in 2021, its owners told The San Francisco Chronicle.

Management told guests to leave, but the Fairmont paid them to stay at nearby hotels, the publication said.

This included the Las Vegas Knights NHL team. The team was in town to play against the local San Jose Sharks and were asked to leave their room shortly before the first of two games.

“I think this is a first for probably everyone on our team,” said Nick Holden, the team’s defender, to the Associated Press. Players were asked to bring their belongings to the game and moved to a new hotel after the game.

All hospitality workers, including hotel management, were laid off on Friday, hotel rep Sam Singer told The Chronicle.

Continue reading: How hotels like Marriott and Wynn Resorts are working to kickstart their gutted group travel businesses

During the pandemic, the hotel occupancy was less than 7%, Singer said.

The 20-story hotel is expected to reopen in 60 to 90 days with a new management partner, Singer added.

The website doesn’t say the hotel is closed, but customers cannot book rooms.

The hotel has 805 rooms and suites as well as three restaurants and a café. It also has 65,000 square feet of event space, a gym, and a rooftop pool.

As the US continues to vaccinate its population against the coronavirus, hotels prepare to bring guests back. Some Marriott hotels offer 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 in its Las Vegas homes, Insider’s Madeline Stone reported.

Marriott expects the COVID-19 trend towards longer vacations to continue and is opening 575 new locations under the “Long Term Stay” brands. The hotels will offer larger rooms as well as additional amenities such as work stations, WiFi, breakfast and gyms, Insider’s Brittany Chang reported.

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