>California’s hospitality market continued to experience severe problems during the second quarter of this year, according to a survey released by Atlas Hospitality Group, based in Irvine, Calif.
The survey found that 478 California hotels were in default or foreclosure during the second quarter of 2010, an 18% increase from the first quarter 2010 and 132% over the second quarter of 2009. The number of foreclosed hotels increased 27% from the first quarter, from 79 to 100, while the total number of hotel rooms foreclosed on was at 7,560 in the second quarter, up 255% from the same period in 2009.
In the second quarter, 78% of the foreclosed hotels were independent properties, down from 90% in the first quarter. Of the 100 hotels that were foreclosed on during the second quarter, only 12 had been resold to new investors. The largest hotel to be foreclosed on was the 512-room Holiday Inn in San Jose.
SOURCE: Atlas Hospitality Group