By George Avalos
Oakland Tribune

SAN JOSE — A new Hilton group hotel is planned for north San Jose, part of a building boom that could add thousands of new hotel rooms to the city as developers place bets that the region’s economy will remain robust.

OTO Development, a South Carolina-based firm that specializes in hotel development, hopes to build the hotel and use one of the Hilton chain brand names for the facility.

It plans to purchase a 3.5-acre site at Highway 237 and North First Street from realty firm South Bay Development, which is planning a major office and industrial park on adjacent land that it bought from San Jose-based tech giant Cisco.

“The job growth in Silicon Valley and the entire Bay Area is a phenomenon that really is unmatched anywhere else in the country,” said Corry Oakes, OTO’s chief executive officer. “Silicon Valley is an amazing engine for the Bay Area and the entire state.”

The proposed hotel is the latest development in what is shaping up to become a big surge in hotel construction in San Jose.

At least 17 hotels, with a total of 3,500 rooms, are in the pipeline. Two of those, totaling 478 rooms, are under construction. Nine others, with a total of 1,255 rooms, are approved but haven’t begun construction. Six projects, totaling 1,836 rooms, have been proposed and are awaiting city approval.

By comparison, over the 15 years that ended in 2008, the start of the Great Recession, San Jose added 3,000 hotel rooms, said Michael Bills, a senior city planner.

The hotel planned by OTO Development is expected to have about 145 rooms, although the number could change in the just-started city approval process.

“It will be an upscale hotel that will be a great amenity for the community,” Oakes said.

OTO has yet to officially disclose which of the Hilton brands would be the flag for the hotel, but city documents indicate it will be a Homewood Suites by Hilton.

“This hotel proposal is a great indication that investors and the market are bullish about providing hotel rooms for growing businesses and entertainment activities in the area,” said Nanci Klein, San Jose’s deputy economic development director.

The nearby, soon-to-be-completed Levi Stadium for the San Francisco 49ers is expected to be a major boost for the project.

“There is no question the football stadium will be a major positive for that area,” said Alan Reay, president of Irvine-based Atlas Hospitality Group, which tracks the lodging market in California. “You’re going to see a lot more hotel activity in the area.”

The hotel also fits into the city’s plans to transform the north side into a place that will attract more businesses, retail outlets, homes, residents and hotels.

“We’re excited about getting this new hotel,” said Laurel Prevetti, the city’s assistant planning director. “This is going to support the economic activity in north San Jose.”

Source:http://www.mercurynews.com/business/ci_25346595/new-hilton-hotel-planned-north-san-jose