August 24, 2020
Foreclosures loom for greater New York’s hotel industry, where $1.47 billion worth of CMBS have gone unpaid, Crain’s New York Business reported. On a dollar basis, it’s the largest wave of such delinquencies nationally, according to Trepp data, and means a delinquency rate of nearly 39%.
The industry isn’t expected to begin to approach 2019 levels until at least 2024, Vijay Dandapani, president of the Midtown-based Hotel Association of New York City, told Crain’s. Worsening the situation, said Dandapani, is the glut of new supply, with 25,000 new hotel rooms slated to come on line this year.
Dandapani and more than 150 New York hotel players signed a letter sent by the American Hotel and Lodging Association to Congress, requesting that lawmakers pass the Hope Act, which would aid small businesses. Nationally, one in four hotels run the risk of foreclosure, according to AHLA.
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Tags: Distressed Assets, Financing, Hotel
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