Fitch: Hotel Owners to Face Lending Challenges in 2016


With a more cautious lending environment ahead in 2016, how must hotel owners set themselves apart to access capital?

Stephen Boyd Photo © Stefan FalkeStephen Boyd, Director of Lodging & REITs, Fitch Ratings (Photo © Stefan Falke)

A new Fitch Ratings report, “Hotel Lenders Tightening the Screws: Key Takeaways from the ALIS Conference,” revealed that hotel owners will encounter a more challenging debt financing environment in 2016, as lenders respond to the broad repricing of risk across most debt capital markets and new regulations.

“The lending environment has changed meaningfully in the last six to 12 months, and hotel owners accessing the debt capital markets in 2016 can expect to pay higher interest rates and encounter stricter underwriting standards,” Stephen Boyd, Fitch’s director of lodging and REITs, told CPE.  “CMBS spreads have widened throughout the capital structure—mostly reflecting the wider repricing of risk higher across most debt capital markets, but also regulatory uncertainty specific to CMBS…

Fitch: Hotel Owners to Face Lending Challenges in 2016

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