SAN JOSE — A big hotel complex in San Jose has staggered into a loan default, a setback that is a reminder the Bay Area lodging sector’s post-coronavirus maladies have yet to run their course.
The 204-room hotel site facing a loan delinquency consists of a Motel 6 and a Super 8 by Wyndham located at 2560 Fontaine Road near the interchange of U.S. Highway 101 and Tully Road in south San Jose.
The lodging property is in default on a $21.7 million loan that Choice Hotels International has provided, according to documents filed on June 6 with the Santa Clara County Recorder’s Office.
An affiliate headed up by Texas-based lodging executive Jagmohan Dhillon obtained the loan in August 2024 from the Choice Hotels group, county real estate files show…