With the Californian economy in a dire situation, it’s not surprising to find that some hotels & timeshares are having financial woes themselves. What is somewhat surprising is that well-known brands like the Four Seasons, Nob Hill’s famed Stanford Court Hotel, Hawthorne Suites, Residence Inn, and Wyndham are all suffering with some individual hotels and timeshares defaulting on loans and foreclosing.
As reported by Andrew S. Ross of the San Francisco Chronicle, there are currently 32 hotels are in foreclosure and 174 in default statewide, according to a June 28 report by the Atlas Hospitality Group in Irvine ( www.atlashospitality.com).
With fewer people travelling because of job loss, potential job loss, and a generally tightening of the proverbially money-belt, hotels have had to cut rates, sometimes dramatically to improve vacancy rates; thus, cutting away profit margins or even losing money to stay competitive. It’s certainly a great time to travel and certainly, if you have the cash to burn, buy a hotel or timeshare!