A recent Atlas Hospitality Group report study found that the number of California hotels that are in default or have been foreclosed on increased substantially during 2009.
Since the beginning of 2009, some highlights include:
• The number of hotels that were foreclosed on rose 313%, from 15 to 62.
• The number of hotels in default increased 479%, from 53 to 307.
• The largest hotel to be foreclosed on is the 469-room Marriott in Downtown Los Angeles.
• California has 4,468 rooms that have been foreclosed on, up 792%.
• There are 32,951 California hotel rooms in default, a 522% increase.
• 81% of all the hotels that are in default have loans that were originated in 2006 and 2007.
• 53.2% of foreclosed hotels filed bankruptcy.