SAN JOSE — A major revamp is being planned at the current downtown site of the San Jose Stage Company that would dramatically expand the theater with a brand-new performance venue and add a hotel to the property.

The new theater and hotel would rise in downtown San Jose’s up and coming South First Area, or SoFA district, a hip neighborhood of restaurants, night clubs, and entertainment venues. The new project would emerge at the existing San Jose Stage property at the corner of South First Street and East William Street, according to documents on file with city planners.

“We think the theater will support the hotel and the hotel will support the theater,” said Jerry Strangis, a developer and land consultant and a board member of the San Jose Stage Company. “They can complement each other.”

The hotel is slated to be a Home2 Suites by Hilton, the city planning files show. The development and construction of the theater and hotel complex will be handled by Swenson and Huntington Hotel Group, and the design is being provided by LK Architecture.

The current Stage Company has roughly 200 seats and is a one-level venue. The new theater would have 330 seats and be a two-level facility and host its performances on the ground floor of the new complex. The entry to the new Stage Company would be on First Street.

The existing theater totals roughly 7,500 square feet. The new theater would be 20,000 square feet in size.

“This is going to be a much bigger and better facility,” Strangis said.

Plans are being fashioned to ensure the San Jose Stage would have alternative locations to offer performances during the estimated one to two seasons that the existing theater would be a construction site. Chief among the alternatives: the Hammer Theater, Montgomery Theater, or San Jose State University.

Hotel guests would enter the lodging on William Street and proceed to a second-floor hotel lobby.

San Jose Stage in October 2018 took steps to solidify its future and keep control of the property by purchasing the site where the development would ultimately take place. The theater company paid $2.3 million to a local government agency to buy the property.

Swenson provided a mortgage totaling nearly $1.9 million to help finance the purchase, according to public records. Santa Clara County issued a second mortgage totaling $435,000.

Eventually, the property ownership would be sectioned off with San Jose Stage owning a section of the property and a group associated with the hotel operation owning the other segment of the site.

The hotel would be seven stories high, according to the planning documents. The number of rooms wasn’t immediately disclosed.

Development activity has blossomed in downtown San Jose in the wake of a big transit village of office buildings, hotel facilities, housing, shops, restaurants, entertainment centers and cultural amenities that Google has proposed near the Diridon train station and SAP Center.

Adobe is busy constructing a striking new office tower in downtown San Jose that would dramatically expand the existing three-building headquarters campus of the cloud services giant and accommodate thousands of Adobe workers.

Plus, big-time developers such as Jay Paul Co., Sobrato Organization, Boston Properties, as well as up-and-coming developers such as Urban Community and Urban Catalyst, have either begun construction or are actively laying plans to develop, multiple sites in the downtown district.

Projects such as the combined theater and hotel project at the San Jose Stage site are have gained traction.

“This is going to be in the heart of the SoFA district,” Strangis said. “This has the potential to attract a lot of people to the area.”