Lenders to Hotels Wish They Weren't
Hotel loans have meant trouble for more than half the lenders who make them, a survey by Hospitality Valuation Services found.
Lenders told the Mineola, N.Y., portfolio management consultant that hotel loans perform worse than their nonhotel real estate loans. Two-thirds of the lenders said they would not consider making a hotel loan today.
Getting Tough
"Lenders have become fairly aggressive with regard to their nonperforming loans," said HVS' president, Roger Cline, who did the survey.
The lenders said nearly a third of the loans that are in nonperforming status will be restructured, and almost half will be foreclosed. The 64 lenders who answered the survey were responsible for 1,088 hotel loans.
