The number of foreclosed California hotels jumped 66% last year, but the bloodshed is expected to wane in the coming months as the hotel industry recovers.
Lenders seized 230 hotels in 2010, up from 138 the year before, Atlas Hospitality Group said in a report. Among them were the Hampton Inn & Suites Ontario, the Country Inns & Suites by Carlson in Calabasas and the Ritz-Carlton Lake Tahoe.
The largest hotel to come back to the Lender was the 331-room Hilton in Sacramento.
San Bernardino County had the most faults with 31, followed by Riverside County with 24 and Los Angeles County with 21.
The number of defaulting hotels – a preliminary step to foreclosure – has declined 12.2%, however, and Atlas expects hotel owners to continue to do better as the economy improves. The number of defaulting hotels increased during the first half of the year, then stabilized.
âWe expect the number of default hotel deposits to drop dramatically in 2012, from 30% to 40%, and hotel foreclosures from 15% to 20%,â Atlas President Alan Reay said. “There is no doubt that the hotel market has now rebounded and is in full recovery mode.”
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