With loans coming due, U.S. banks angle to avoid hotel foreclosures

7 Dec, 2011

Bloomberg reports that as $17.5 billion in securitized loans backed by U.S. hotels come due in the next two years, lenders are doing anything they can to avoid foreclosure on lodging properties—more so than on any type of commercial real estate. Workout agreements have been reached on 53 percent of distressed hotel loans since the start of 2008, the highest among six commercial-property categories, according to data from Real Capital Analytics Inc. in New York. Among hotel loans being worked out is $1.44 billion in financing backed by 355 La Quinta Inns & Suites owned by a unit of New York-based Blackstone Group LP. It will mature on July 9, 2012, after three one-year extensions, according to Standard & Poor's.

Topic : Banks, Foreclosures, Loans
External Source : Bloomberg, The Real Deal

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