California hotel foreclosures up 122% in 2010
The quarterly survey by the Atlas Hospitality Group of Irvine attributes the growing number of foreclosures on the effects of the recession on hotel owners who took out expansion and renovation loans during better economic times.
Atlas predicted that the number of hotels in default and foreclosure will continue to rise through the first half of 2011 before the numbers begin to level off under a stronger economy.
The largest hotel in the state to be foreclosed on in 2010 was the 512-room San Jose Holiday Inn near the Norman Y. Mineta International Airport.
San Bernardino County led the state in the number of foreclosed hotels with 17, followed by San Diego County with 16, according to the report. Los Angeles County was home to 12 hotels that were foreclosed on last year.
Most of the foreclosed hotels were independently owned.
The number of hotels in default statewide increased by only 6.5%, the report said, but that figure would have been higher except that a deal was reached in October for the purchase of the financially troubled Extended Stay of America chain, which involved 109 properties in California.
-- Hugo Martin
Photo: The San Jose Holiday Inn, the largest California hotel in foreclosure. Credit: Holiday Inn