Three San Diego hotels up for sale

Three foreclosed San Diego hotels are now up for sale as part of a portfolio of eight bank-owned properties located in Southern California and Utah.

The Courtyard by Marriott San Diego and Holiday Inn Express San Diego, both in Old Town, and the Holiday Inn in downtown are all now up for sale.

Also being sold are hotels in Manhattan Beach, Atlanta, Long Island, Salt Lake City and Provo, Utah.

Jones Lang LaSalle Hotels, which is selling six of the properties on behalf of the lender, Massachusetts Mass Mutual Life Insurance Co., noted that they can be purchased individually or as a portfolio.

Sunstone Hotel Investors Inc. also formerly owned the W hotel in downtown San Diego, which it purchased four years ago for $96 million. They walked away from the trendy hotel after deciding it was worth much less than the nearly $85 million owed.

The hotels were returned to the lender after Sunstone Hotel Investors Inc., the hotels owner, decided last year to default on a $246 million loan covering nearly a dozen hotels that were worth significantly less than the money owed on the properties.

Experts say that the properties will probably he highly sought after since the hotels are located in desirable areas throughout San Diego.

Categories: KUSI