California’s Hotel Foreclosures Triple
Atlas Hospitality Group, a commercial real estate brokerage in Irvine, Calif. specializing in hotels, reported that in the first nine months of 2009, hotel foreclosures more than tripled from 15 in 2008 to 47. Hotels in default also quadrupled to 259. Most of the troubled hotels were in Southern California, with more than 70 percent of imperiled California hotel loans originating between 2005 and 2007, said Alan Reay, president of Atlas Hospitality. Both Riverside and San Bernardino counties had nine and six foreclosed hotels respectively. However, the entire state has been affected by hotel defaults and foreclosures. One Northern California example is the Fremont Marriott Silicon Valley, whose owners, AEW Fremont LLC, a division of Everest Holdings, defaulted on a $38 million loan last month. The owners took out…
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