Thursday, January 29, 2009

Foreclosure Looms Over Bay Area Hotels

According to InsideBayArea.com, two East Bay hotels have slipped into foreclosure status, resulting from a decrease in corporate travel. Default notices have been filed on the 170-room Sheraton Pleasanton and 293-room Coliseum Suites in Oakland. According to the article, hotel occupancy rates in Pleasanton are down a whopping 28% as Tri-Valley businesses such as E-Loan, Safeway, JPMorgan Chase and WaMu layoff workers and cut corporate travel budgets.

The Sheraton Pleasanton continues to operate business as usual and owners are reportedly in daily negotiations with lenders. Meanwhile, lenders on the Oakland hotel are attempting to seize the closed, fenced-off property.