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/ |