More California hotels in trouble in 2009
The number of California hotels that are in default or in foreclosure continued to increase in 2009 because of slumping travel demand and declining real estate values, according to a new hospitality report.
The report by Atlas Hospitality Group said the number of hotels that were in foreclosure rose 313%, from 15 in 2008 to 62 in 2009. More than half of the foreclosed hotels have filed for bankruptcy. The number of hotels in default on their loans jumped 479%, from 53 in 2008 to 307 in 2009.
The largest hotel to be foreclosed is the 469-room Marriott in downtown Los Angeles. Other troubled properties include the St. Regis Monarch Beach in Dana Point, the Sheraton Universal and the W hotel in San Diego.
Most of the struggling hotels remain open, but real estate experts say it will take a great increase in room rentals or a big influx of financing to keep the properties operating.
The counties of Los Angeles, San Diego, San Bernardino and Riverside had the most foreclosures and defaults, according to the report.