H
otel owner Ajay Shingal is facing a financial crisis as his $22 million mortgage on the Wyndham Garden Valley San Jose Silicon Valley hotel comes due next month. The 206-room hotel has lost two-thirds of its value over the past decade, from $46.5 million in 2014 to $16.1 million today. Shingal's company, 360 Global Venture Group, received a commercial mortgage-backed securities loan from UBS AG in 2014, which is now in special servicing.

    The hotel's decline in value raises concerns that Shingal may choose to forfeit the property rather than continue making payments on the loan, which has a principal worth more than the hotel. This strategy has been employed by other large commercial property owners in the Bay Area as low-interest loans come due. Miami-based LNR Partners is the special servicer of the Wyndham Garden Valley San Jose Silicon Valley hotel.

    The hotel's location off Highway 101 and proximity to Downtown San Jose and the international airport make it a prime spot, but its value has plummeted over the years. Shingal did not respond to a request for comment on how he plans to address the looming maturity date.