Today I was reviewing a list of 18 properties in Hawaii that were either in foreclosure or some form of distress. The majority of these properties are hotels that have had the tables turned over on them. They were bought in 2005 or 2006 as average daily rates were increasing and today the hotels have had to reduce their rates by as much as 40% to keep occupancy up. We seem to be trailing most major cities in the United States on these distressed properties, but it is becoming evident that in some of our resort and hotel properties there will be some great buys from the lenders.
The next question is how long will the lenders be willing to hold on to these properties?