Green shoots continue to grow and the smell of recovery is in the air, except in the sunshine state, where 300 California Hotels in Foreclosure or Default.
More California hotels are being pushed into foreclosure as tourists and businesses alike scale back their travel plans and owners are unable to pay their mortgages.
Statewide, more than 300 hotels were in foreclosure or default on their loans as of Sept. 30 — a nearly fivefold increase since the start of the year, according to an industry report released Tuesday.
The list of troubled properties includes the St. Regis Monarch Beach in Dana Point, the downtown Los Angeles Marriott, the Sheraton Universal and the W hotel in San Diego.
Most struggling hotels remain open, but industry experts believe many properties are likely to be closed down in the months ahead, even if they are not in foreclosure, because they are losing so much money.
We are often told to look at government issued economic statistics like GDP as an indicator of economic health, but rarely do mainstream media sources point out the real leading economic indicators. In our opinion, the fact that vacation related businesses around the country are going bankrupt, and hundreds are lined up to follow in their footsteps going forward, is a sure sign of a continued contraction. Other real leading indicators we like to consider when trying to understand where we are in this economic cycle are the transportation industry, specifically train, truck and boat cargo, all of which are significantly down from the boom-times of just a few years ago. The smell of this recovery is peculiar — rotten eggs maybe?
Related reading:
CAUTION: Crash/Collapse Dead Ahead Say Faber, Rogers, Dent and Celente
Gerald Celente September 2009: When Commercial Real Estate Crashes There’s Going to Be No Bottom
Mmm… rotten eggs
Well, all the thanks should go to the “patriot act” & don’t forget “homeland security!!
Going to America on holidays today, is like going on holidays in the 30’s to Soviet Russia!
Who would wanmt to???
Come on, Boris…
Look at the bright side – there should be some smokin’ deals on hotel rooms and stuff.
I’m planning on placing a bid on the Ritz Carlton in Half Moon Bay for $100.
If everything works out, I’m going to give Mac and his family a beach-side room. I might even rename one of the holes on one of their golf courses “Mac Daddy.”
I love it — and so will the wife. I just woke her up (it’s 8am) to tell her we have a free room at the Ritz Carlton Blaine!
My brother just flew out to Atlanta and scored a room at the ‘W’ for 4 days for $500. whaaaat. that’s crazy, if you ask me, considering rooms were easily running $300 a night just a year or so ago.
Many of the W’s, you may recall, are underwater all over the country. If you happen to be in Dallas, TX at anytime in the future, check out the W in downtown during the evening hours. You may see one or two room lights on …. the rest are empty.
I don’t care what the media says. If I am rolling through any metropolitan downtown area (save NYC and maybe LA), there are few lights on in the newly built, multi-million dollar hotels/condos. It’s all good though, if they go bankrupt, the US taxpayer will step in to save the day. That’s what we do now: Socialize the losses, privatize the profit.