Hyatt House Pleasant Hill was acquired in a court-ordered receivership as part of a nationwide hotel portfolio linked to a $204 million loan. The portfolio, purchased by Shidler Group in 2017, faced severe financial difficulties exacerbated by the COVID-19 pandemic. Hotel managers struggled to maintain operations and obtain funding, with some reporting an inability to sustain services. The situation reflects broader challenges in the Bay Area lodging sector, exemplified by the recent foreclosure of the Oakland Marriott City Center.
The 142-room East Bay hotel is tied to a $204 million loan that financed 22 hotels across the country, highlighting the financial struggles in the lodging sector.
Chartwell Hospitality executives noted, 'We are back to where we were two weeks ago, which is out of funds to keep these hotels open,' indicating severe financial distress.
An incredible amount of stress is being put on hotel teams as they struggle to keep assets open for business during this financially tumultuous period.
The foreclosure proceedings against the two East Bay hotels represent only some of the problems that have engulfed the Bay Area lodging sector.
#hotel-acquisition #court-ordered-receivership #covid-19-impact #lodging-sector #bay-area-real-estate
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