Lenders Pull Back on Hotel Deals

Mitch Paskover is the president of Continental Funding Group.

LOS ANGELES—Lenders are getting more conservative on hotel financing, according to Mitch Paskover, president of Continental Partners. The firm has financed several major hotel loans in the past year, but Paskover says that lenders today are taking a more conservative approach to hotel deals and offering less leverage. The same trend is happening in other markets as well. To find out the drivers behind the shift, we sat down with Paskover for an exclusive interview. Here, we discuss the hotel lending climate, why uncertainty is the new buzzword and what trends are overlapping in the hotel market from other sectors.

GloveSt.com: Continental Partners has financed several major hotel transactions this past year, most recently the Ritz-Carlton Rancho Mirage. Looking ahead, what does lender appetite look like for hotel assets?