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So much for the high end not suffering...
So much for the high end not suffering...
The "challenges" for San Francisco's biggest business are coming thick and fast. That oft-used word at last Tuesday's San Francisco Visitors & Convention Bureau luncheon rang loud and clear two days later when the Four Seasons Hotel on Market Street defaulted on a $90 million loan.
Those who might have forgotten were reminded that Nob Hill's famed Stanford Court Hotel had gone into receivership two weeks earlier, owing $89 million after its new owners bought the place for $93 million two years ago and spent $32 million in renovations. But wait, there's more. Says Joe D'Alessandro, the bureau's CEO: "I would not be surprised to see at least a couple more go in the next few months."
There's a wave of hotel defaults and foreclosures sweeping up and down California, say D'Alessandro and other industry experts. 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). Listed among the more recent ones are a Hawthorne Suites and a Residence Inn in Sacramento.
Those who might have forgotten were reminded that Nob Hill's famed Stanford Court Hotel had gone into receivership two weeks earlier, owing $89 million after its new owners bought the place for $93 million two years ago and spent $32 million in renovations. But wait, there's more. Says Joe D'Alessandro, the bureau's CEO: "I would not be surprised to see at least a couple more go in the next few months."
There's a wave of hotel defaults and foreclosures sweeping up and down California, say D'Alessandro and other industry experts. 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). Listed among the more recent ones are a Hawthorne Suites and a Residence Inn in Sacramento.