Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Friday, 13 March 2020

Hotel Loans Facing Near-Term Maturity Seen At Risk

The hotel sector, already dealing with pressure from growing supply, particularly in certain major markets like New York and Seattle, is now facing the repercussions from numerous event cancellations. That could spell trouble for loans facing near-term maturity.

Commercial Real Estate Direct Staff Report

The hotel sector, reliant on transient leases, is expected to take it on the chin as a result of the coronavirus pandemic. That has increased the risk that hotel loans will see an increase in defaults.

The sector already was facing pressure, particularly in certain major markets like New York and Seattle, from an expected increase in supply. It's now facing the repercussions from numerous event cancellations, including the massive South by Southwest film and music festival in Austin, Texas; Facebook's F8 tech conference in San Jose, Calif.; St. Patrick's Day parades in Boston, Chicago and Philadelphia, and the Coachella Valley Music and Arts Festival in Indio, Calif.

STR had been projecting room supply to increase this year by 2 percent, while room demand would increase by only 1.5 percent. It previously had projected that revenue per available room, a widely used industry metric, this year would increase by only 0.5 percent, largely because of the supply growth. Last year, RevPAR was up 0.9 percent, the lowest annual increase in 10 years. But its 2020 projection...


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Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





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