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From the Distressed Opportunities Department:
I’ve been trying to get in to meet the top dog (unsuccessfully so far ) with an investment firm that is going on a shopping spree next year for some well placed distressed and troubled hotels. They are a cash buyer but a friend of mine at the organization gave me some of their research to chew on:
From Real Capital Analytics “Hotel distressed assets are now the number two property behind Retail in regard to highest amount at $29.3 Billion currently listed as distressed. That’s a 65% increase over the amount listed in August 2009.”
Manhattan and South Florida have the most listings and that makes sense when you look at their Distressed CRE per Capita statistics. Manhattan has about $3500 per capital in distressed commercial properties with South Florida clocking in at just over a $1,000.
I’ve been trying to get in to meet the top dog (unsuccessfully so far ) with an investment firm that is going on a shopping spree next year for some well placed distressed and troubled hotels. They are a cash buyer but a friend of mine at the organization gave me some of their research to chew on:
From Real Capital Analytics “Hotel distressed assets are now the number two property behind Retail in regard to highest amount at $29.3 Billion currently listed as distressed. That’s a 65% increase over the amount listed in August 2009.”
Manhattan and South Florida have the most listings and that makes sense when you look at their Distressed CRE per Capita statistics. Manhattan has about $3500 per capital in distressed commercial properties with South Florida clocking in at just over a $1,000.
Check this out: CMBS Performance for HospitalityPercentage of loans 30 or more days delinquentin August 2008: 0.46% February 2009: 2.04% August 2009:6.15%
With hotel property values and occupancy rates on the decline, commercial mortgage-backed securities (CMBS) backed by hotel loans currently have a 60-day delinquency rate of 6.81%, according to recently released research by Fitch Ratings.
The delinquency rate of hotel loans is the highest among all major commercial real estate (CRE) types and is nearly double the overall CMBS delinquency rate of 3.86%, Fitch said. While the overall CMBS rate is projected to peak at 12% by 2012, hotel CMBS delinquency rates are expected to exceed that, Fitch added. In October alone, 26 hotel loans worth $1.1bn became newly delinquent.
The delinquency rate of hotel loans is the highest among all major commercial real estate (CRE) types and is nearly double the overall CMBS delinquency rate of 3.86%, Fitch said. While the overall CMBS rate is projected to peak at 12% by 2012, hotel CMBS delinquency rates are expected to exceed that, Fitch added. In October alone, 26 hotel loans worth $1.1bn became newly delinquent.
From HotelNewsNow.com:
Overall, in year-over-year measurements, the industry’s occupancy fell 6.4 percent to end the week at 52.6 percent, ADR dropped 9.9 percent to US$95.86, and RevPAR decreased 15.7 percent to finish at US$50.47 This is a two year slump for the hotel industry. Although occupancy is off 6.4% compared to 2008, occupancy is off about 18% compared to 2006 and 2007. There are standard hotel deals being done. Here’s by who: Hotel transactions under $10 million are still occurring, according to HotelNewsNow.com. The majority of the buyers are Asian-American owner-operators, who are using existing bank relationships or Small Business Administration loans for financing. The site that runs our Fidelity CRE media page also has posted some distressed hotel data on our site. You can find it HERE if you want to see the latest hotels placed for sale under distressed conditions.
Speaking of distressed what’s this new Distressed Asset association I’ve been hearing so much about? Sounds like a good place to make new connections, learn about what’s unfolding in the distressed and troubled asset world, and get access to some real time market data. Check out CREDAA HERE or HERE. NEXT POST: Bring Me Your Huddled Masses
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