SJSU dorm rooms coming to historic downtown San Jose hotel up for sale

SAN JOSE, Calif. (KGO) -- The Signia by Hilton, formerly the Fairmont, in downtown San Jose is up for sale.

And while the historic hotel continues business as usual - details of it being on the market are unclear.

What is certain is what's planned for the South Tower above Morton's Steakhouse.

This year, San Jose State University will transform hotel beds into student dorm rooms.

A move the college is calling the Bay Area's largest post-pandemic conversion of a downtown commercial property to residential housing.

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Alex Stettinski is the CEO of the San Jose Downtown Association.

"I think that is absolutely incredible and very much needed right now," Stettinski said.

Stettinski said while it's sad the hotel is losing rooms, from a business perspective there is underutilized space.

"With the convention business that we have currently the amount of hotel rooms are not really needed right now," Stettinski said.

Renovation of the south tower is scheduled to begin in August.

San Jose State's project is referred to as Spartan Village on the Paseo.

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The new home for Spartans in the heart of downtown will include 700 student beds and 124 affordable student beds.

"And it will add to the vibrancy we so badly need in our core especially during the week during business hours," Stettinski said.

Hundreds of student residents will be within a short distance walk to small businesses and a seven-minute walk to campus along downtown's core pedestrian boulevard - the Paseo.

"Downtowns in the United States in particular have been for a long time business hubs, business centers and office buildings up and down and not enough residential.

Stettinski says downtown San Jose, like many other cities are aiming for a balance post-pandemic.

"The downtowns that had a healthier mix between residential and business fared better and they recovered much faster- San Diego is a great example," Stettinski said.

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