By Thor Kamban Biberman

The largest hotel sale during the first half of the year in three separate counties (Los Angeles, Alameda and Santa Clara) were all lender foreclosure sales.

By contrast, San Diego didn’t have any foreclosures and it didn’t have any identified defaults, according to a new report from Atlas Hospitality Group.

The three foreclosure sales in Los Angeles, Alameda and Santa Clara counties accounted for $218.18 million of sales volume, which was 15.7 percent of the entire dollar sales volume in the state through the first six months of 2025.

Seven hotels were sold in San Diego County in the first half of the year, which was one more than the first half of 2024, while the total dollar volume was up 114 percent on an annual basis to $208.37 million through the first half of 2025, according to the report.

The total number of rooms sold in San Diego climbed from 596 through June of 2024 to 1,038 through June of 2025.

San Diego’s median price per room was up 4 percent, Atlas said. The most expensive local sale in the first half of 2025 was the 280-room Residence Inn La Jolla, which was bought for $79.34 million.

Through mid-year, Los Angeles County’s individual sales increased 12.5 percent on an annual basis while its dollar volume increased by 14 percent, according to the report. The median price per room in Los Angeles increased by 6.5 percent year-over-year.

The most expensive sale in Los Angeles County was the $68 million foreclosure sale of the 397-room Line Hotel.

The largest transaction in Alameda County was the foreclosure sale of the 500-room Marriott City Center hotel in Oakland for $70.18 million, according to Atlas.

The largest hotel sale in Santa Clara County in the first half of 2025 was the foreclosure sale of the 541-room Signia Hotel in San Jose for $80 million.

The Alameda County, the Santa Clara, and Los Angeles hotels haven’t been the only ones in trouble.

Atlas Hospitality Group president Alan Reay cited numerous examples of hotels that are in foreclosure, have been handed back to their lenders, or are in default. But none of them are in San Diego County.

The Marriott City Center in Oakland was taken over in a foreclosure auction earlier this month.
“And Park Hotels handed back the keys on Park 55,” Reay added, saying that Park Hotels & Resorts also relinquished the San Francisco Hilton Union Square.

Both hotels are now in receivership following a default on a $725 million loan that covered both the 1,024-room Park 55 and the 1,919-room Hilton Union Square.

Orange County’s individual hotel sales were up 100 percent year-over-year through the first six months of 2025, but the dollar volume declined 43 percent, according to Atlas Hospitality. The median price per room was down 25 percent in Orange County.

The most expensive sale in Orange County was the 120-room Travelodge in Costa Mesa at $22.6 million.

Individual sales in Riverside County were down 60 percent year-over-year, while the total dollar volume was down more than 50 percent on an annual basis through the first half of the year.

Riverside County’s median price per room increased 101 percent through the first half of 2025 despite the dollar volume declines, the report found.

The most expensive sale in Riverside County was the 20-room Spirit of Sofia in Palm Springs, which sold for $5.6 million.

California’s individual hotel sales continue to lag, down 7 percent in the first six months of 2025, according to Atlas Hospitality. The average price per room statewide declined 16.4 percent on an annual basis and the median price per room was down 2.5 percent at mid-year.

“We continue to see a disconnect between buyer and seller expectations,” Atlas said. “The higher interest rates combined with increased operating costs, especially in labor and insurance is dampening sales activity.

“We are seeing an increase in notices of default and foreclosures in certain markets, which is putting additional downward pressure on sales prices.”

thor_biberman@sdtranscript.com