The Propellers of Debt Liquidity A strong re-emergence of hotel financing driven by CMBS will propel debt liquidity to its highest level since 2007. CMBS lenders will continue to drive pricing, terms and accessibility. Balance sheet lenders are more selective with regard to asset quality, market and sponsorship, but will continue to provide floating rate structures that are favored by hotel owners. It's expected that hotels will remain a targeted asset class for lenders as they offer high yields, relative to other real estate and fixed income classes, relative to the risk."The unpaid balance of hotel CMBS loans with initial maturity dates through 2013 totals nearly $19 billion[iii]. Lenders, and in particular subordinate lenders, have shown an increased willingness to foreclose or exercise other rights and remedies, including note sales. Consequently, 2013 could very well mark the beginning of the long-awaited 'great deleveraging' particularly for hotel assets," added Mathew Comfort, Executive Vice President of Jones Lang LaSalle.
Americas Hotel Transaction Volume To Eclipse 2012 At $18.5 Billion In 2013
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