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175 California Hotels In Default

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175 California Hotels In Default; Sheraton Keahou Bay Resort in Hawaii Defaults; More Defaults Coming

Hotel owners are facing the same problems as homeowners, being upside down on their properties with no good escape. Please consider Hotel foreclosures jump in California.
In California, 175 hotels are in default -- the first stage in the foreclosure process -- according to a report from Atlas Hospitality Group, an Irvine-based brokerage firm. Another 31 have been foreclosed, nearly one third of them in the Inland region.

Of those in default or foreclosure, about 75 percent obtained new loans between 2005 and 2007 for construction financing, re-financing or to buy the hotel, according to the firm. Atlas Hospitality estimates that 2,500 hotels -- about 25 percent of the state's entire hotel population -- refinanced or obtained new loans in that time meaning more defaults and foreclosures could be on the horizon.

The industry has been rattled by foreclosures before, especially in the mid-1990s, but the impact today is more widespread, hitting both low-end and high-end properties in every region, Reay said.

Those who bought hotels between 2006 and 2006 are likely sitting on properties worth at least 50 percent less than what they paid, he said. [Mish: obviously there is a typo in the date range]

Reay's firm is marketing The Block at Big Bear, a 50-room hotel that catered to snowboarders. The hotel's owner walked away earlier this year and closed the hotel, which is in default. The hotel was appraised for more than $4 million in 2006. Today, Reay's firm, working with a court-ordered receiver, is asking $2.04 million for the property.

Hoteliers will likely have to survive at least two more years of low revenues, diminishing profit margins and fewer rooms booked by travelers unwilling to spend.

Atlanta-based PKF Hospitality Research has forecast that the revenue hoteliers earn per room will reach its lowest point of the recession in the third quarter of this year.

Sheraton Keauhou Bay In Foreclosure

In Hawaii, the Sheraton Keauhou Bay Resort and Spa is in foreclosure after owner defaults.

The Sheraton [Keauhou] Bay Resort and Spa on the Big Island is going into foreclosure after the resort's owner defaulted on its mortgage, another sign Hawaii's beleaguered tourism industry is suffering during the global recession.

Owners Koa Hotel LLC have defaulted on nearly $60 million remaining on their mortgage, interest and fines. Koa Hotel is owned by the New York private equity firm Brickman Associates. The property's major creditor is Lehman Brothers Holdings Inc., which filed for bankruptcy last year.

The resort's business declined amid a broader drop in visitors to Hawaii since last spring. So far this year, 15 percent fewer tourists have visited the Big Island compared to the first part of 2008.

Anyone who bought hotels in anywhere in the US between 2003 and 2007 more than likely overpaid, and by as much as 50% or more. Tourism is down everywhere and that tourism is not going to recover for years, perhaps decades as cash strapped consumers attempt to repair balance sheets.

Everything is falling apart at breakneck speed for California. I wonder how Arnold gets any sleep, as the phone would be ringing off the hook 24/7.

Anybody here have insight into the health of Britain's hotels, B&B's, guest houses, etc? I can't see the increasing value of the pound doing any wonders for our tourism and hospitality industry.

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There is over capacity everywhere.

This correction is going to be very painful.

you guys are extremely fortunate that Gordon has over the last decade made you the best placed country in the world to deal with the gobal depression in fact if the british electorate come back to their senses and vote for him in the next election i may well have to consider leaving Switzerland to come back to the safety and economic prosperity of the UK

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you guys are extremely fortunate that Gordon has over the last decade made you the best placed country in the world to deal with the gobal depression in fact if the british electorate come back to their senses and vote for him in the next election i may well have to consider leaving Switzerland to come back to the safety and economic prosperity of the UK

Yes our dear leader clearly should be elected World Economic Overlord, he has a financial genius that no one on they puny planet truly understands.

The greatest leader in the world.

mrblobbylb1.jpg

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175 California Hotels In Default; Sheraton Keahou Bay Resort in Hawaii Defaults; More Defaults Coming

Sheraton Keauhou Bay In Foreclosure

In Hawaii, the Sheraton Keauhou Bay Resort and Spa is in foreclosure after owner defaults.

Anyone who bought hotels in anywhere in the US between 2003 and 2007 more than likely overpaid, and by as much as 50% or more. Tourism is down everywhere and that tourism is not going to recover for years, perhaps decades as cash strapped consumers attempt to repair balance sheets.

Everything is falling apart at breakneck speed for California. I wonder how Arnold gets any sleep, as the phone would be ringing off the hook 24/7.

Anybody here have insight into the health of Britain's hotels, B&B's, guest houses, etc? I can't see the increasing value of the pound doing any wonders for our tourism and hospitality industry.

Over 100 hotels and resorts now for sale in Chiang Mai. Our 2nd city, but it's not that big. Occupancy rate 20%.

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Anybody here have insight into the health of Britain's hotels, B&B's, guest houses, etc?

Having spent the last week booking up hotels for me and the family in various parts of the country for the summer, I'd say that, at the higher end of the market at least, occupancy rates are about the same as last year - i.e. I was able to find rooms easily enough but not always on the exact dates I wanted or at my first preference hotel. I suspect that more people booked UK holidays this year when the pound was really low, offsetting the drop in other types of business. At the lower end, Premier Inns and other budget hotel chains have had a rapid drop off in business from what I've read - that fits my observation as I kind of assume no-one would book into one of those places for a holiday, just for business or other necessity.

edited:spelling

Edited by tbatst2000

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Having spent the last week booking up hotels for me and the family in various parts of the country for the summer, I'd say that, at the higher end of the market at least, occupancy rates are about the same as last year - i.e. I was able to find rooms easily enough but not always on the exact dates I wanted or at my first preference hotel. I suspect that more people booked UK holidays this year when the pound was really low, offsetting the drop in other types of business. At the lower end, Premier Inns and other budget hotel chains have had a rapid drop off in business from what I've read - that fits my observation as I kind of assume no-one would book into one of those places for a holiday, just for business or other necessity.

edited:spelling

Bargain hotels for business eh? Well, they are also great for the old 'midnight rendezvous' with the neighbour or office tart; not that I would know anything about that of course.

Recession hits everyone.

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Time for the Eagles:

On a dark desert highway, cool wind in my hair

Warm smell of colitas, rising up through the air

Up ahead in the distance, I saw shimmering light

My head grew heavy and my sight grew dim

I had to stop for the night

There she stood in the doorway;

I heard the mission bell

And I was thinking to myself,

'This could be Heaven or this could be Hell'

Then she lit up a candle and she showed me the way

There were voices down the corridor,

I thought I heard them say...

Welcome to the Hotel California

Such a lovely place (Such a lovely place)

Such a lovely face

Plenty of room at the Hotel California

Any time of year (Any time of year)

You can find it here

Her mind is Tiffany-twisted, she got the Mercedes bends

She got a lot of pretty, pretty boys she calls friends

How they dance in the courtyard, sweet summer sweat.

Some dance to remember, some dance to forget

So I called up the Captain,

'Please bring me my wine'

He said, 'We haven't had that spirit here since nineteen sixty nine'

And still those voices are calling from far away,

Wake you up in the middle of the night

Just to hear them say...

Welcome to the Hotel California

Such a lovely place (Such a lovely place)

Such a lovely face

They livin' it up at the Hotel California

What a nice surprise (what a nice surprise)

Bring your alibis

Mirrors on the ceiling,

The pink champagne on ice

And she said 'We are all just prisoners here, of our own device'

And in the master's chambers,

They gathered for the feast

They stab it with their steely knives,

But they just can't kill the beast

Last thing I remember, I was

Running for the door

I had to find the passage back

To the place I was before

'Relax,' said the night man,

'We are programmed to receive.

You can check-out any time you like,

But you can never leave!'

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Time for the Eagles:

On a dark desert highway, cool wind in my hair

Warm smell of colitas, rising up through the air

Up ahead in the distance, I saw shimmering light

My head grew heavy and my sight grew dim

I had to stop for the night

There she stood in the doorway;

I heard the mission bell

And I was thinking to myself,

'This could be Heaven or this could be Hell'

Then she lit up a candle and she showed me the way

There were voices down the corridor,

I thought I heard them say...

Welcome to the Hotel California

Such a lovely place (Such a lovely place)

Such a lovely face

Plenty of room at the Hotel California

Any time of year (Any time of year)

You can find it here

Her mind is Tiffany-twisted, she got the Mercedes bends

She got a lot of pretty, pretty boys she calls friends

How they dance in the courtyard, sweet summer sweat.

Some dance to remember, some dance to forget

So I called up the Captain,

'Please bring me my wine'

He said, 'We haven't had that spirit here since nineteen sixty nine'

And still those voices are calling from far away,

Wake you up in the middle of the night

Just to hear them say...

Welcome to the Hotel California

Such a lovely place (Such a lovely place)

Such a lovely face

They livin' it up at the Hotel California

What a nice surprise (what a nice surprise)

Bring your alibis

Mirrors on the ceiling,

The pink champagne on ice

And she said 'We are all just prisoners here, of our own device'

And in the master's chambers,

They gathered for the feast

They stab it with their steely knives,

But they just can't kill the beast

Last thing I remember, I was

Running for the door

I had to find the passage back

To the place I was before

'Relax,' said the night man,

'We are programmed to receive.

You can check-out any time you like,

But you can never leave!'

I like this tune, but I really wish they would give an homage to Tull for ripping it off almost completely!

Ian Anderson likes to joke about it, and he brought it up last year when I saw his 40th anniversary tour. Oddly enough, the Eagles where an opening act for Tull before they released 'Hotel California'.

Pub Trivia....

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Over 100 hotels and resorts now for sale in Chiang Mai. Our 2nd city, but it's not that big. Occupancy rate 20%.

One of my big fears about the crash is that all the paedos and sexpervs that are out in Thailand will return to the UK. I don't think we truly appreciate what a service that country has done for us.

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One of my big fears about the crash is that all the paedos and sexpervs that are out in Thailand will return to the UK. I don't think we truly appreciate what a service that country has done for us.

Most of the sexpats are old men married to thirty-somethings. Paedos? Look at Cambodia. Thailand won't tolerate them any more and is jailing the left and right, working with Interpol, child protection police teams from across the world etc. They'd had enough of it.

Reckon you've just as many if not more in the UK to be honest.

I also suspect Laos will become or has already become a target for paedophiles by now. Vietnam woke up to the problem and was forced to admit it when they arrested Gary Glitter.

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Most of the sexpats are old men married to thirty-somethings. Paedos? Look at Cambodia. Thailand won't tolerate them any more and is jailing the left and right, working with Interpol, child protection police teams from across the world etc. They'd had enough of it.

Reckon you've just as many if not more in the UK to be honest.

I also suspect Laos will become or has already become a target for paedophiles by now. Vietnam woke up to the problem and was forced to admit it when they arrested Gary Glitter.

I was staying in Phnom Penh and there were 2 American guys in our hotel, at least 50 years old, long socks and shorts, balding but with pony tails who were unashamedly walking around with 2 girls you were 17 at the very most.

The group I was in tried to make it clear we thought they were a pair of filty perverts who should be arrested.

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On the hotel issue it is the same symptom of the property boom.

If a hotel costs me £1m I can charge £100 a night for the rooms.

If it costs me £2m I can still only charge £100 a night for the rooms but my mortgage costs are doubled.

All this will mean is that one set of people will become banktupt and the next generation will have the chance to run a profitable business.

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I was staying in Phnom Penh and there were 2 American guys in our hotel, at least 50 years old, long socks and shorts, balding but with pony tails who were unashamedly walking around with 2 girls you were 17 at the very most.

The group I was in tried to make it clear we thought they were a pair of filty perverts who should be arrested.

I stayed in Phnom Penh once. Never again. I didn't see any obvious paedo's mind.

The only nice place was a huge restaurant on the river front, called the Titanic I think. Amazing place. Had a jasmine green tea there.

There's also a fantastic curry house, tiny place bizarrely called 'The Kebab Shop'. Best curry I've ever had.

Went 'Sharkey's', 'Heart of Darkness', that Aussie hotel bar and Martini's. Got completely smashed and fell out of the tuk-tuk on the way back to the hotel.

Was a real Louis Theroux weird weekend.

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