"This is the first CMBS hotel loan that I know of in Californiathat has been marketed for sale from a special servicer," Reaysays. "We've seen portfolio offerings of a mixed bag of assets, butthis is the first time that we know of that they have listed a notefor sale from an individual hotel."

The property is the 182‐room Ramada Plaza Hotellocated at 2151 Hotel Circle South in San Diego, which includes anoutdoor heated pool and spa, a fitness center, valet services andan on‐site restaurant and lounge. The hotel was purchasedin August 2000 for $15.96 million and the loan, now in default,matured in January 2009.

"This loan was originated in 1998, and the buyer assumed it in2000, so to have a loan this seasoned be in trouble speaks volumesabout how deep and how far this market has fallen," Reay says. Henotes that most of the distressed hotel loans that Atlas istracking were from the period 2005 through 2007, representing about81% of the troubled hotel loans in California."