The Oakland Marriott City Center hotel was foreclosed and acquired by a lender for $70.2 million, considerably below its 2017 value of $143 million. This foreclosure highlights the downturn in the Bay Area's hotel market, which has faced numerous loan defaults and declining property values, largely due to the economic impacts of the coronavirus. The hotel's valuation has dropped by 50.9%, and it is currently worth about 30% less than its foreclosed loan amount and significantly below its assessed value. Such declines in property values can negatively impact local government revenues.
The Oakland Marriott City Center hotel was taken back by its lender, which bought the property for just under $70.2 million through the foreclosure. In 2017, the hotel was worth $143 million, indicating a 50.9% price decline from its prior value. The current value of the hotel is about 30% less than the $100 million loan amount, and 49.1% below the current assessed value of $138 million.
Numerous other hotels in the Bay Area have encountered loan defaults, foreclosures, and a plunge in their value as the region's lodging sector struggles to convalesce from its coronavirus-linked economic maladies.
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