OAKLAND >> The East Bay’s largest hotel in downtown Oakland tumbled into default on a delinquent loan, documents filed this month with the Alameda County Recorder’s Office show.

The 500-room Oakland Marriott City Center at 1001 Broadway, next to the Convention Center, is in default on a loan that totals $100 million, according to county real estate files.

Invesco CMI Investments filed the default against the hotel. Invesco CMI bought the loan in May 2024 and now could foreclose on the landmark if the delinquency isn’t cured.

Hong Kong-based Gaw Capital bought the downtown Oakland hotel via an affiliate in 2017 for $143 million.

The financial woes that have engulfed the Oakland City Center Marriott 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 for $10.6 million, a jaw-dropping nosedive of 76% from its prior value.

• Hilton Oakland Airport Hotel abruptly closed its doors in August, 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, according to Morningstar. That was a stunning 70% plunge from the hotel’s prior value.

“You are going to see more hotels fall into default,” said Alan Reay, president of Irvine-based Atlas Hospitality Group, which tracks the California lodging market. “There is a disconnect between what sellers and buyers of hotels expect the price should be. There is going to be an adjustment in pricing.”

Business-oriented markets such as San Francisco, Oakland and Silicon Valley are struggling with their hotels.

“Downtown markets that depend on meetings, conventions, and business traffic are really having problems,” Reay said.

Lenders have been attempting to work with hotel property owners patiently. But those days could be on their last legs, which means hotel delinquencies could rise further.

“Lenders have been extending loans and pretending things might turn around,” Reay said. “Extend and pretend is coming to an end. More foreclosures are ahead. More hotel owners are going to walk away and just give the lenders the keys to their properties.”