Banks are taking over several Bay Area hotels. Here's why

LESLIE BRINKLEY. REPORTER: THEY -- INCLUDING THE 249 ROOM EMBASSY SUITES HOTEL IN WALNUT CREEK ACROSS FROM THE PLEASANT HILL BART STATION. ASHFORD SAID IN A STATEMENT THAT THEY ARE WALKING AWAY FROM PAYING THE MORTGAGES ON THE HOTELS, TO SAVE OVER 300 MILLION DOLLARS IN PAYOUTS IN CAPITAL EXPENDITURES IN THE TROUBLED WATERS OF THE CURRENT HOSPITALITY MARKET. FOUR OF THE HOTELS ARE IN THE EAST BAY. >> WE HAVE NOT TALKED WITH ASHFORD TRUST, WE TALKED WITH THE OPERATOR OF THE FACILITY. THEY ARE CONCERNED BECAUSE THEY HAVE JOBS. OUR BELIEF IS THAT BECAUSE THEIR OCCUPANCY NUMBERS ARE STILL STRONG THAT THE OPERATION WILL CONTINUE. REPORTER: OTHER EAST BAY HOTELS WHERE THE KEYS WILL BE SURRENDERED TO LENDERS INCLUDING COURTYARD BY MARRIOTT AND A RESIDENCE IN IN NEW YORK -- NEWARK, INCLUDING THE MARRIOTT BY THE AIRPORT. POST-COVID BUSINESS TRAVEL IS DOWN. HOTELS BASED ON BUSINESS TRAVEL ARE FACED WITH REINVENTING THEM SELVES -- THEMSELVES FOR LEISURE OR SPECIAL EVENTS OR A MORE REMOTE WORKFORCE. JASON LONG IS AN EXPERT IN PROVIDING TECHNOLOGY TO CORPORATIONS TO NEGOTIATE AND BOOK HOTEL SPACE. >> IT IS NOT JUST ABOUT STAYING THE NIGHT IN A HOTEL. THERE REPURPOSED SING, REENGINEERING THE HOTELS. WE HAVE THE LEISURE PHENOMENA, WERE BUSINESS TRAVELERS ARE MIXING LEISURE WITH IS THIS -- BUSINESS. REPORTER: THE VISITORS BUREAU IS PROMOTING HOTEL STAYS FOR YOUTH SPORTS AND KOHLER SPORTS FANS. >> ARE HOTELS ARE VENTURE -- OUR HOTELS ARE VENTURING INTO SPACES TO OFFER THEMSELVES TO DIFFERENT MARKETS, TO HELP THEM GET INTO THAT REINVENTION SPACE. UNTIL BUSINESS TRAVEL COMES BACK. REPORTER: THE FUTURE OF FOUR EAST BAY HOTELS IS UNCERTAIN, AS BANKS TO CONTROL.

Channel: ABC7 News Bay Area

Views: 10,317

Keywords: news, abc, abc7news, banks taking over hotels, bay area hotels, east bay hotels, returning leases, business travel bay area down, Embassy Suites walnut creek, Courtyard by Marriott hotel Newark, Residence Inn Newark, Courtyard by Marriott Oakland Airport

Id: Sylc_WrtDBI

Length: 2min 13sec (133 seconds)

Published: Wed Jul 12 2023