Checking in on U.S. Hotel Performance Since the Pandemic
U.S. hotel loans had the highest modification rate among the major property sectors, as borrowers asked for debt relief as a result of the pandemic. Lenders' willingness to work with borrowers coupled with federal stimulus and lending programs have averted a surge in foreclosures. As forbearance periods expire, it's unlikely we'll see an overwhelming increase in foreclosures even as many operators deal with underfunded reserves, which paid debt service and are critical to remaining competitive. Also, large group hotels in urban markets haven’t recovered as well as leisure hotels have. However, the hotel sector should continue its comeback buoyed by net cash flow that has rebounded close to, and in some cases exceeded, pre-pandemic highs.
DBRS Morningstar is a global credit ratings business with 700 employees in eight offices globally. DBRS and Morningstar Credit Ratings are committed to empowering investor success, serving the market through leading-edge technology and raising the bar for the industry.
Together, we are the world’s fourth largest credit ratings agency and a market leader in Canada, the U.S. and Europe in multiple asset classes. We rate more than 2,600 issuers and 54,000 securities worldwide and are driven to bring more clarity, diversity and responsiveness to the ratings process. Our approach and size provide the agility to respond to customers’ needs, while being large enough to provide the necessary expertise and resources. For more details visit us at dbrs.com.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.