San Jose hotel owner hopes bankruptcy will help hold off foreclosure
Briefly

San Jose hotel owner hopes bankruptcy will help hold off foreclosure
"Choice Hotels claims in bankruptcy court papers that Dhillon has mismanaged the hotels and can't be trusted to head up the property's ownership group. Mr. Dhillon oversaw and cannot be expected to arrest the ongoing deterioration of the (hotel) property, Choice Hotels states in a bankruptcy court filing. Choice added, He is responsible for the absence of reliable books and records pertaining to the two-hotel site."
"Choice Hotels International provided the hotel with $21.7 million in financing in 2024 and now seeks to foreclose on the failed loan, Santa Clara County records show. Jagmohan Dhillon, a real estate executive who controls affiliates that own multiple hotels, heads up the business entity that owns the east San Jose hotels, which are at 2560 Fontaine Rd. near the interchange of U.S. Highway 101 and Tully Road."
An affiliate that owns a 204-room Motel 6 and Super 8 by Wyndham in east San Jose filed for bankruptcy in Texas, which is poised to delay foreclosure proceedings. Choice Hotels International provided $21.7 million in financing in 2024 and now seeks to foreclose on the failed loan. Choice Hotels seeks to replace owner Jagmohan Dhillon with a trustee, alleging mismanagement, absence of reliable books and records, and ongoing property deterioration. Dhillon controls affiliates that own multiple hotels, including Galaxy Hotel Management. State Bank of Texas previously foreclosed on a Super 8 in Livermore in December 2025.
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