Excess Takes Its Toll On Hotel Values
Hotels Magazine reports: The lack of available credit is causing defaults in all markets and among every property type. New York-based real estate research firm Real Capital Analytics reports that as of June 30, there were 1,060 distressed hotels in the United States valued at US$15.7 billion. The biggest chunk of that distress comes from bankrupt Extended Stay America.
"We started seeing distressed hotels 18 months ago and it started with smaller independents in secondary markets," says Alan Reay with the brokerage firm Atlas Hospitality Group, Irvine, California. "Right now (mid-July) in California there are 32 hotels being foreclosed on, and 31 of those are independents. Only one is a franchise."
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Posted by: Mark Alferman