Foreclosures + State of Finance + How Hotel F&B Pivoted + Critical Considerations for Reopening

A new national report shows that the hotel industry is facing a historic wave of foreclosures as the COVID-19 pandemic continues to devastate small business hotel owners and its workforce. Since the beginning of the pandemic, the hotel segment has faced a historic number of delinquencies and is the most heavily hit sector of the commercial mortgage-backed securities (CMBS) market. On Aug. 18, nearly 4,000 hotel industry leaders sent a letter to Congress urging immediate action to help hotels avoid foreclosure and the loss of tens of thousands of jobs.

The report, compiled by Trepp, shows that the percentage of loans that is 30 or more days delinquent is 23.4 percent as of last month—the highest percentage on record. By comparison, the percentage of hotel loans that were 30 or more days delinquent at the end of 2019 was 1.3 percent.