NEW YORK CITY—Although the month-to-month drop in CMBSdelinquencies overall to 5.13% was the smallest in morethan a year at three basis points, securitized hotel loans didconsiderably better than that. The lodging sector saw its rate oflate-pays on CMBS decline by 17 bps from March to 5.18%,Fitch Ratings said last week, with the $90 millionin resolutions outpacing the $50 million in new delinquencies.

The reduction in the hotel CMBS delinquency rate appreciablynarrowed the gap between the lodging sector and retail. Still thebest-performing sector with just 5.11% of Fitch-rated loans overdueby 60 days or more, retail's delinquency rate declined by only fourbps from March.

As it was in March, office was in third place; however, officeCMBS delinquency ticked upward between March and April, the onlyone of the five major food groups to do so. Office finished themonth at 5.43%, compared to 5.36% in March.