About $31B of CMBS loans backed by hotels are set to mature by 2024—roughly 30% of the total of nearly $102B in securitized hotel loans in the US—and some hotels that rely on business travel and conferences are facing a reckoning as lenders demand more capital from them to refinance—or tell them not to come back at all.

Many hotel loans are floating-rate packages with three-year terms, giving hotel owners more exposure to interest-rate hikes, with a constant need to refinance their debt. Hotels in business districts that cater to business travelers and conference attendees are struggling to refinance loans on properties that have seen values plunge during the pandemic.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Jack Rogers

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.