Time To Throw In the Towel
The number of California hotels involved in a foreclosure action or in default has risen 125 percent in the past 60 days.
Thirty-one hotels have been foreclosed upon, the Irvine-based Atlas Hospitality Group reported Friday.
There are 175 hotel properties in default on their notes right now.
Those properties already lost to foreclosure have largely been in the counties of San Bernardino, Riverside and San Diego.
With 19.6 percent of the total, San Bernardino County leads the state in foreclosed hotels. Riverside County was next with 16.1 percent. San Diego came in third with nearly 13 percent of the foreclosed market share.
Alan Reay, president of Atlas Hospitality Group, said Atlas saw signs the hotel industry may be affected by the housing crisis in California about 18 months ago, and has compiled data over the past year on troubled hotel properties.
Initially, foreclosure action was taken against independent hotels, the hotel brokerage and consulting firm noted. Most were boutique motels in secondary markets.
“Only in the last 60 days have we seen a massive run-up,'' Reay said. “I think hoteliers are getting to the point of not seeing light at the end of the tunnel, and they're starting to throw in the towel.”
Alstrynomics......Delivering the True Trends as economists tell you what you want to hear.