While the
lodging industry continues to see improving revenues and higher
occupancies, the number of distressed hotels
is still climbing statewide and in San
Diego, according to a quarterly report released Thursday.
Locally, the inventory of foreclosed
hotels during the first quarter of this year grew to 17, a 183 percent
jump over a year earlier, reported Atlas Hospitality Group. By
comparison, the statewide increase was 87 percent. Better news was in
the area of defaults, which in San
Diego County slid 21 percent compared to the first quarter of
2010.
San Bernardino County
leads the state in the number of hotels foreclosed on with 18, followed
by San Diego County.
“That’s a reflection of hotels doing better in certain marketplaces.
Revenues have increased over where they were last year,” said Alan
Reay, president of Atlas Hospitality. “Then why are we seeing more
defaults and foreclosures? It’s because they simply have too much debt
on them.” |
The
W hotel in downtown San Diego fell into foreclosure in 2010 and has
recently been marketed for sale.
|