Fairmont San Jose filed for bankruptcy protection back in March this year (read more here) and was seeking to replace its Accor management and brand with a better-known alternative in the market.
The hotel is set to become a Signia by Hilton, a Hilton’s meetings and event brand introduced in 2019 (read more here), catered to large events and meetings that must be relatively rare in the current environment.
You can access Hilton here.
Here’s an excerpt of what San Jose Mercure News was reporting last week:
“The Hilton bid contemplates that the hotel will assume the name ‘Signia by Hilton San Jose’ or another name that includes ‘Signia’ in it and that it will be managed by Hilton upon its reopening,” bankruptcy court records show.
The hotel’s owners have, in multiple court filings, stated that they expect a new operator to provide $45 million to help bolster the hotel’s finances.
“The Hilton bid includes financial support that the debtors believe is commensurate with the needs of the hotel and the debtors’ needs to exit Chapter 11,” the hotel’s owner stated in the court papers.
Are Fairmont and Accor not as helpful in bringing in business as Hilton?
Accor Management accused hotel owner Eagle Canyon Capital of not providing enough financial support to the hotel operators until revenue and occupancy levels could return to the pre-COVID levels
The owner of the Fairmont claims that Accor Management did not sufficiently help the hotel owner to address the crumbling finances of the Fairmont San Jose.
You can argue that the Fairmont brand and Accor are not well known in the United States, unlike in Canada and Europe.
Hilton by Signia (No longer Hilton Signia)?
Hilton announced its convention brand to address Marriott Marquis. It was supposed to be Hilton Signia and not Signia by Hilton.
Fairmont San Jose bankruptcy:
Signia Hilton launch in 2019:
It will be challenging for Hilton to get its Signia brand off the ground due to lessened demand for large business meetings and convention hotels in the next few years.
Perhaps having these hotels as Signia by Hilton and not Hilton Signia helps with other hotel owners that may have exclusive agreements with the chain not to have the same brand within the set distance?