Oakland's landmark Waterfront Hotel in Jack London Square abruptly closes
The Waterfront Hotel, one of Oakland's most iconic hotels, is closing its doors for good Friday, marking a significant blow to the city's economic landscape.
Located in the heart of Jack London Square, the hotel sits on a prime piece of real estate, adjacent to the estuary, marina, and the busy ferry terminal.
Once the largest tenant in Jack London Square, the hotel's closure raises concerns about the future of the city's historic waterfront district. Known for its stunning views of the port and estuary, the 145-room hotel has been a fixture in the area for decades.
However, as the neighborhood grapples with declining foot traffic and concerns over crime, many people told CBS News Bay Area that Jack London Square is experiencing its worst downturn in decades.
Moises Cruz, a worker at the hotel for three years, shared his experience of the hotel's decline.
"We were losing business a lot. Less people were coming and a couple of people had to get laid off. They had to shut down the restaurant early," Cruz explained. "So I knew that they had money problems. But they were trying to fix it, and it just didn't work out."
Cruz, an Oakland native, has worked in the Jack London Square neighborhood for about a decade, holding a job at a nearby restaurant before joining the Waterfront Hotel staff. He believes several factors contributed to the closure, including the pandemic's impact on business travel, the departure of major sports teams, and rising crime.
"There was a lot of homelessness and crime over here. People were breaking into cars and stuff. So a lot of people don't want to come to this area for that specific reason," Cruz said.
For visitors like Morgan Ward, who just arrived from San Diego to check in for her reservation, the closure came as a shock.
"It's sad. I have stayed at this hotel over the years so many times. And it's a great hotel. I have the best memories," Ward said, expressing her disappointment.
On Friday, workers turned away guests who arrived for their reservations, with some surprised guests reporting that they had not been informed of the hotel's closure beforehand.
The hotel, owned by Jack London Square Associates LLC and managed by Hyatt, has long been a popular destination for tourists and business travelers. However, its lease agreement with the Port of Oakland, which owns the land, was recently disrupted when the owner stopped paying rent.
Despite the lease running until 2061, according to the Port of Oakland, it's unclear what the future holds for the hotel, especially as the Port's attorneys work to recoup the non-payment and resolve the lease.
It is also unclear if a new operator can take over the lease to operate it as a hotel.
Some customers are also trying to recover payments for events that were booked and subsequently canceled. Cephus Johnson, co-founder of the non-profit Love Not Blood, expressed frustration over the closure.
"I'm disappointed that this great hotel, with the backing of Hyatt, could do such a thing to us. And we're just the little people," Johnson said.
Jack London Square, which has seen businesses come and go in recent years, continues to struggle. Several businesses, including Forge Restaurant and the high-end French eatery Left Bank, have recently closed.
Despite this, there is hope on the horizon, with a Dave and Buster's location slated to open in the area later this year.
For some locals, the closure of the Waterfront Hotel is a particularly painful loss.
"It came out of nowhere for me. I mean I guess, not totally nowhere. I feel like a lot of businesses have been closing and have a hard time staying open out here in Jack London, which is really sad. But to lose this one, this one hurts," said neighbor Allyson Yuen.
Now unemployed after losing his job with the hotel, Cruz hopes the district will eventually recover. He said Hyatt is providing laid-off workers severance pay of one week for each year worked.
"It just really sucks that we've got to go through this. People are losing their jobs. I just hope it gets better," he said.
The Waterfront Hotel's closure marks the second major hotel shutdown in Oakland in recent months. In August, the large Hilton Hotel next to the Oakland International Airport closed its doors due to declining business and rising crime.
