Only 64 hotels were built across California in 2000, the study by Costa Mesa-based Atlas Hospitality Group says. That figure was down nearly 40% from the 101 that were built in 1999.
The sharp drop wasn't a reflection of California's economic performance or its tourism industry, both of which boomedyear. Instead, says Atlas president Alan the slowdown was caused by dramatically tighter underwriting standards imposed by lenders.
"Lenders became very conservative," Reay says. Even those willing to finance new lodging projects often required developers to put up 40% or 50% of a project's cost, compared to as little as 20% or 30% just one year earlier, he adds.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
