SAN JOSE — The reopening of a bankrupt downtown San Jose hotel that’s been closed since March in the wake of the coronavirus has landed in limbo after a judge’s ruling.
A set of decisions by a U.S. Bankruptcy Court judge enables the start of an arbitration proceeding to resolve a dispute between the bankrupt Fairmont San Jose hotel’s owner and the iconic lodging’s operators.
“It is likely that a decision will be made by the arbitrator at the end of the next 5 to 6 months, essentially by the end of the year,” said Sam Singer, a spokesperson for the group that owns the double-tower hotel in downtown San Jose.
That in turn has left the date and circumstances under which the hotel can reopen up in the air.
“We will do everything in our power to open as soon as possible,” Singer said.
The 805-room Fairmont San Jose shut its doors in March, around the same time that the hotel’s owners, a group led by business executive San Hirbod, filed for a Chapter 11 bankruptcy to attempt to reorganize the hotels’ shattered finances.
“We do not have a firm date on the property’s reopening,” Singer said.