Number of California distressed hotels rise in Q1

According to the latest figures from Atlas Hospitality Group, 406 hotels across the state have either defaulted on their loans or been foreclosed. During the past three months, 79 hotels were foreclosed, a 27.4 percent increase from the 62 hotels foreclosed at the end of 2009.

The number of hotels in default climbed from 307 to 327, and include four hotels in San Francisco and two hotels in Alameda County.