CoStar's senior director of hospitality analytics, Emmy Hise, told San Francisco Chronicle over 30 hotels must deal with loans due in the next two years. Hise says the average daily hotel room rate of $234 is below pre-pandemic levels. Earlier this month, Park Hotels and Resorts announced its plans to stop making payments on the $725M non-recourse CMBS loan scheduled to mature in November. - A few other San Francisco hotels, such as Huntington Hotel and Yotel, were recently sold in foreclosure auctions.
- While hotels have been struggling to pay their loans, strict lending restrictions have made it difficult for hotel developers to secure funding, impacting construction.
- Data shared by Build Central Inc. with Reuters revealed that 59 out of 98 hotel projects that were paused this year have been on hold since March, when Silicon Valley Bank collapsed.
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