There were far fewer hotels sold in California last year for much lower prices, according to the latest annual report from hotel brokerage firm Atlas Hospitality Group.

Hotel shoppers spent just $524.9 million to buy 92 hotels in California last year, according to the report.

It was a 75 percent drop in spending compared to 2008 when 187 hotels were sold for $2.13 billion.

It hasn't been for lack of buyers and financing, said Alan Reay, president of Atlas Hospitality Group. Sellers and lenders with foreclosed hotels on their books have balked at selling properties at clearance prices, he said. Much like the recent housing industry, which has seen multiple bidders on a single home, hotel sales are sometimes receiving 30 to 40 bids each, he said.

What slowed hotel sales in 2009 to a historic low were unrealistic prices, he said.

In 2010 sellers and lenders will be forced to sell unless they can afford to hold on to properties for a long time, Reay said.

San Bernardino County was the only region in California where more hotels were sold last year, 11 hotels versus 8 in 2008. The amount paid for those hotels dropped 3 percent though to $24.4 million. Reay said most of those were sold by lenders and priced appropriately.

The priciest hotel sold in the Inland region was the 292-room Marriott in downtown Riverside for $19.3 million, a bargain for Pinnacle Hotels USA in San Diego which bought it from Sunstone Hotel Investors last June. At the time, Barry Lall, president and CEO of Pinnacle, said he preferred, "buying low and selling high."

In Riverside County, seven hotels were sold last year for $34.5 million versus 18 in 2008 for $73.8 million.

Los Angeles County had the steepest drop in hotel sales. Just four were bought last year, 89.7 percent fewer, for $41.1 million versus 39 sold in 2008 for $1.08 billion.

Life was tough for the nation's hotel owners in 2009 as most saw the number of rooms occupied, average daily rates and the revenue earned per available room all drop 8.7 percent, 8.8 percent and 17 percent respectively, according to Smith Travel Research which tracks hotel trends.

The industry entered the recession after a hotel construction boom, which only meant more empty rooms once fewer travelers - both for leisure and business - took trips.

While the occupancy rate nationwide is expected to stay where it is this year and average daily rates will continue to decline by 3.2 percent or so, most industry leaders are expecting 2011 to be "heaven," said Jan Frietag, vice president of global development with Smith Travel Research.

"The news is getting less bad," he said. "Things are going to get a lot better two years from now."

Reach Kimberly Pierceall at 951-368-9552 or kpierceall@PE.com