New York’s hotel crisis puts pressure on $4bn mortgage bond sector

Financial Times (FT) (11/12/2020)
  • Due to the cornavirus pandemic, 80% of NY’s hotels backed by commercial mortgages are under financial distress.
  • 37.7% of NY hotel loans packaged into commercial mortgage-backed securities (CMBS) are on an investor warning list that the mortgage loans could soon be transferred to debt collectors.
  • Another 44.7% of NY hotel loans have been transferred to special servicers for help getting the hotels to pay their mortgages or foreclose on the properties.
  • A hotel executive deemed half of NY’s hotels surviving a “great” outcome.