It's estimated that NONE of the CA hotels financed in 2005-2007 have equity remaining!

[Liberal_in_LA]

California Hotel Foreclosures Double in Last Three Months

By Mark Heschmeyer
July 1, 2009

From Watch List reader, Alan X. Reay, founder and president of Atlas Hospitality Group in Irvine, CA, comes this astounding statistic. The number of California hotels in default or foreclosed on has jumped 125% in the last 60 days. The state now has 31 hotels that have been foreclosed on and 175 in default.

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"In reviewing the hotels in default or foreclosed on, we found that over 75% of the loans originated from 2005 to 2007. During this period, over 2,500 California hotels either refinanced or obtained new purchase loan financing," Reay added. "Unfortunately, based on today's market values, we estimate that none of these hotels have any equity remaining. The unprecedented decline in room revenues (California is down 21.5% year-to-date) combined with the jump in cap rates has resulted in a massive loss in values. We estimate that values are currently 50 to 80% lower than at the market's peak in 2006-2007."
:wow: :wow: :wow: :wow:

http://www.costar.com/News/Article.aspx?id=1DB66D58332D777B14DBC726F4ED0C05

[bird hunter]

As (bankrupt) California goes - so goes the Nation. LOL!

California got themselves into this pickle with massive spending. It will have to work its own way out and apparently without more taxes, which would drive the California economy even more into the tank - if it is possible to be more in the tank!

[nc4bo]

1. Hey, California is the canary. More will follow soon, just wait for it. nt

[DJ13]

2. unprecedented decline in room revenues (California is down 21.5% year-to-date)

My wife works in a hotel, and it really is that bad here.

Most every week this year she has worked only 4 days per week, which is significant loss in our household income.