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Hotel Trouble?

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This New York Times story has to do with San Francisco hotels, but given all the hotels that have recently opened around Los Angeles (SLS at Beverly Hills, Riot Hyatt on Sunset, Montage, etc), it seems important to point out: The piece considers the softening of the hotel industry from the point of view of investors. "Rick Swig, a hotel consultant based in San Francisco, predicts that many hotels owners in his area will begin missing loan payments this year. Already, he said, “the vast, vast majority of hotels that were either bought or significantly refinanced after 2004 are in some level of technical default with their lenders right now.” Technical default, he said, means the owners can no longer meet the loan-to-value ratios or debt-service-to-value ratios required by their loan agreements." On the plus side, consumers can get huge discounts for hotels rooms in SF right now. [NY Times]