By Delia Reynolds | 2024-02-06

Hotel deals implode in Bay Area and California as economy turns murky

Acquisitions of hotels plunged by 48.3% in Northern California and by 60.2% in Southern California Statewide, hotel purchase activity plummeted 56.3% in 2023 in California. The decline in sales activity is a result of hotel buyers staying on the sidelines at a time of economic uncertainty. Some hotels tumbled into foreclosure during 2023, while in other cases, hotel property owners simply walked away from making payments and gave the keys to their lenders

Hotel deals implode in Bay Area and California as economy turns murky

The market for hotel purchases has nosedived in both the Bay Area and California, indicating that investors believe the weakness in the lodging sector has yet to run its course.

Impact of Economic Uncertainty

Following Alan Reay, president of Atlas Hospitality Group, most investors are in a wait-and-watch situation due to economic uncertainty, leading to a decline in hotel purchase activity.

Foreclosure and Abandonment

Some hotels tumbled into foreclosure during 2023, while in other cases, hotel property owners simply walked away from making payments and gave the keys to their lenders.