by Bill McBride on 7/01/2009 12:59:00 PM
Wednesday, July 01, 2009
I've already posted most of the data in this article ... so I'll just excerpt a quote.
From Bloomberg: Hotel Loan Defaults Double as Recession Cuts Travel (ht mark, ghostfaceinvestah, brian)
As many as one in five U.S. hotel may default on their loans by the end of 2010 as the recession forces companies to spend less on travel and perks, according to Kenneth Rosen, an economist at the University of California.The hotel segment was the most overbuilt of all CRE - and that is saying something with all the excess retail space!
The value of hotel properties in default or foreclosure almost doubled to $17.3 billion in the second quarter through June 24 from $9 billion at the end of the first quarter, data compiled by Real Capital Analytics Inc. show. The New York-based research firm, which began tracking distressed commercial property in November, expects hotel defaults to increase by as much as $2 billion next quarter, said analyst Jessica Ruderman.
“Hotels without question will have the highest foreclosure rate of any commercial real-estate sector,” said Rosen ...
Posted by Bill McBride on 7/01/2009 12:59:00 PM