Thank you for sharing!

Your article was successfully shared with the contacts you provided.

IRVINE, CA-The number of California hotels in default or foreclosure increased during the third quarter, but an even bigger story may be lurking in the shadows—the shadow inventory of properties that are in trouble but have yet to hit the default market. Alan Reay, president of Irvine-based Atlas Hospitality Group, tells GlobeSt.com that his firm’s research suggests “a huge shadow inventory of distressed deals that are yet to hit the default market” could be up to 1,000 hotels in addition to the 529 in default or foreclosed already. California’s total hotel count is approximately 10,000.

A newly released Atlas survey of distressed hotels in California shows that the 529 in the state represent a 10.7% increase from the second quarter 2010 and 71.2% increase over the third quarter of 2009. The 529 figure includes 119 properties that are in foreclosure, up 71.2% over the third quarter of 2009, and 410 that are in default, up more than 58% from the third quarter of last year.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.