The state of U.S. hotel financing

Holiday cheer never really infiltrated the U.S. commercial real estate finance sector.

Entering the new year, the country’s CRE capital markets continue to struggle with a general malaise that has resulted in a financing and transactional impasse.

Its troubles have been brought on by a wide assortment of symptoms: Considerably higher interest rates for fixed- and floating-rate loans; stricter and more costly lending terms; tumbling property values; waves of billions of dollars in looming debt maturities; and a more skittish banking sector that’s acutely aware of tighter regulatory scrutiny. As a result, refinancings and new loan originations have slowed to a crawl.

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