OAKLAND — A lender has taken ownership of Oakland’s biggest hotel through a foreclosure that underscores the ailments and price nosedives that plague the Bay Area’s sickly lodging market.

The Oakland Marriott City Center hotel was taken back by its lender Invesco CMI Investments, which bought the property for just under $70.2 million through the foreclosure, according to. Default Resolution Network, which handled the proceeding.

Invesco CMI Investments filed the default against the 500-room hotel at 1001 Broadway next to the city’s convention center. It then bought the loan in May 2024 from the original lender, Nataxis New York Branch, according to documents on file with the Alameda County Recorder’s Office.

The loan that was foreclosed totaled $100 million, county documents show.

Numerous other hotels in the Bay Area have encountered loan defaults, foreclosures, and a plunge in their value as the region’s lodging sector continues to struggle.

“We are seeing a downturn in business travel for the Bay Area that is continuing post-COVID,” said Alan Reay, president of Atlas Hospitality Group, which tracks the California lodging market. “Business-oriented hotels are struggling.”

The $70.2 million price that the lender placed on the hotel through the foreclosure suggests a deep discount from the property’s prior values.

In 2017, the hotel was worth $143 million, based on the price that an affiliate of Hong Kong-based Gaw Capital paid to buy it.

The hotel’s value, based on the foreclosure, is also 49.1% below its current assessed value of $138 million, as determined by the Alameda County Assessor’s Office.

A slump in property values can throttle revenue for an array of public agencies. If real estate values turn soft in a region, the decline could impede a crucial revenue stream for cities, counties, regional agencies, and school districts.

The financial woes that have engulfed the Oakland Marriott City Center are the latest indicator of ailments for the lodging sector. Other setbacks in Oakland include:

The 162-room Courtyard Oakland Downtown was bought in October 2024 for $10.6 million, a nosedive of 76% from its prior value.

Hilton Oakland Airport Hotel abruptly closed its doors in August 2024, a shutdown that eliminated 152 jobs.

The 145-room Waterfront Hotel in Jack London Square shut down without warning in late January.

The 289-room Radisson Oakland received an appraisal of $15 million in October 2024, according to Morningstar. That was a 70% plunge from the hotel’s prior value.

A 276-room dual-branded hotel at 1431 Jefferson St. in downtown Oakland was taken back by its lender through a streamlined foreclosure process.

“We are seeing a dramatic reset in values for Bay Area hotels,” Reay said.