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San Diego's Hotel Occupancies May be on the Rise but so are Foreclosures
with a 433% Increase Over 2009 Bank Owned Properties

By Lori Weisberg, The San Diego Union-Tribune
January 25, 2011

Hotel occupancies and revenues may be on the rebound, but that hasn’t kept foreclosures at bay in San Diego County, which has the second highest number of bank-owned properties in the state, according to a lodging report released Friday.
 
By the end of 2010, 16 hotels accounting for nearly 1,700 rooms had been foreclosed on, a 433 percent over 2009 when there were just three real estate-owned hotels, reported Atlas Hospitality Group, which tracks defaults and foreclosures among California hotels. The county was second only to San Bernardino, which had 17 bank-owned hotels, Atlas said.

San Diego’s higher number of distressed properties may have been precipitated by a boom period of sales and refinancings a few years ago when hotel values were at their peak, speculated Atlas CEO Alan Reay.

The W Hotel downtown was acquired by Bank of America in a courthouse auction

“We have a situation where a lot of the loans were originated between 2006 and 2008, when San Diego was enjoying a record run-up in prices and new development, so we had a lot further to fall with San Diego,” said Reay. “That is why we’re seeing more foreclosures there than even Los Angeles County. San Diego at that time was riding the crest of a wave of prices that people were paying for hotels.”

For the rest of the story including property foreclosure listings please visit:
http://www.signonsandiego.com/news/2011/jan/21/bank-owned-hotels-san-diego-rise/



Contact:

Lori Weisberg, Staff Writer
San Diego Union-Tribune
350 Camino de la Reina
San Diego, CA  92102
619-293-2251
lori.weisberg@uniontrib.com


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