According to a recent student done by the Atlas Hospitality Group who researched a group of distressed hotels, the number of hotels in California that are either in default or have been foreclosed on increased substantially during 2009.
Perhaps not surprisingly, according to the report 2009 was an incredibly tough year on Californian hotels that are in default or have been foreclosed on. Atlas Hospitality Group found the following statistics since the beginning of 2009 within the researched hotels.
The number of hotels foreclosed on rose 313%, from 15 to 62.
The number of hotels in default increased 479%, from 53 to 307.
The largest hotel to be foreclosed on is the 469-room Marriott in Downtown Los Angeles.
California has 4,468 rooms that have been foreclosed on, up 792%.
There are 32,951 California hotel rooms in default, a 522% increase.
81% of all the hotels that are in default have loans that were originated in 2006 and 2007.
53.2% of foreclosed hotels filed bankruptcy.
4.8% of all foreclosed hotels were CMBS Loans.