Hotels are headed for an Historic level of Foreclosures, Lodging Group warns
Nearly one out of four mortgage-backed hotel loans are delinquent, according to the American Hotel & Lodging Association. Payments on nearly one-fourth of all loans backed by hotel real estate are delinquent by at least 30 days, signaling an imminent and unprecedented wave of foreclosures, according to the American Hotel & Lodging Association (AH&LA). It notes that the $20.6 billion in delinquent payments on commercial mortgage-backed securities (CMBS)—23.4% of all CMBS loans extended to hotels—compares with overdue payments of $1.15 billion at the end of 2019, or 1.3% of outstanding CMBS loans at the time. The current level of delinquencies even surpasses the $13.5 billion that lenders were owed during the Great Recession that started in 2008, according to the association. The report, compiled for the AH&LA by a research company called Trepp, is the latest in a torrent of bad news from the association about the state of its industry. Its release was accompanied by the...