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An Analysis of Future Delinquency for Hotel CMBS Loans
Articles and Chapters
  • John B. Corgel, Cornell University
  • Aaron Walls, Colliers PKF Hospitality Research
Publication Date
11-1-2010
Abstract

The hotel industry seems to be recovering from its recent abyss, but the financial damage to many properties from many months of decline will continue for some time. In particular, the hotel industry faces the prospect of heavily leveraged properties submerged by delinquencies and defaults. An analysis of debt coverage ratios for 365 hotel properties with commercial mortgage-backed security loans shows considerable deterioration from 2008 to a nadir in 2010. Starting in 2011, net operating income and debt coverage ratios should gradually improve, with noticeable improvement in 2012.

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Citation Information

Corgel, J. B., & Walls, A., (2010). An analysis of future delinquency for hotel CMBS loans. Cornell Hospitality Quarterly, 51(4), 457-458. Retrieved [insert date], from Cornell University, School of Hospitality Administration site: http://scholarship.sha.cornell.edu/articles/540/