Lack of Distress-Related Activity for Hotels
The Deal Magazine reports: The Noble Organization, a hotel real estate fund, management and development group, should be perfectly situated in today's distressed commercial property environment. The number of hotel-related defaults has exploded in the past year or so and now reaches $32.3 billion, according to real estate research firm Real Capital Analytics Inc.
Of all CRE asset classes, hotels constitute the smallest number of deals, both in quantity and dollar value. In 2007, U.S. hotel property sales totaled more than $40 billion, according to Real Capital. Last year, that figure barely eclipsed $2.5 billion.
The reason for a lack of distress-related activity is simple. Most owners have tried whatever means possible to avoid selling hotels because values have fallen so far that their investment would be wiped out.
Most lenders have been doing everything possible to accommodate them. "Lenders don't want any properties," says Ben Thypin, senior market analyst at Real Capital. "They definitely don't want hotels."
View the full article on The Deal Magazine: Lack of Distress-Related Activity for Hotels
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Posted by: Nina Turner