Apparently people aren’t traveling much these days, at least not in the Golden State.
Hotel foreclosures in California more than tripled during the first nine months of 2009, with 47 properties falling victim between January and September, according to Bloomberg.
That’s up from just 15 a year earlier; notables include the St. Regis Monarch Beach, a 400-room resort in Dana Point.
Hard-hit Riverside County had nine hotels in foreclosure, San Bernardino had six, and Los Angeles had five.
Meanwhile, defaults more than quadrupled to 259; in Los Angeles, 28 hotels were in default, followed by 26 in San Diego and 23 in San Bernardino.
More than 70 percent of the hotel loans tied to the defaults were originated during the boom years, between 2005 and 2007.
Roughly 2,500 California hotels were financed or refinanced between those years, accounting for about a quarter of the state’s supply.
And now loans secured by 1,500 hotels with an outstanding balance of nearly $25 billion may be at risk of default as occupancy levels continue to decline.
In the top 25 U.S. travel markets, occupancy slipped to 61 percent from 69 percent through the first eight months of the year, as both leisure and business travelers cut down.