Comments ( 16 )

7d
bruce1 , what's your opinion? Comment below:

Most recent quote is 60% at 495..

Marriott flag, imminent PIP, good market etc.

Your question above leaves out innumerable variables

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7d
nessy , what's your opinion? Comment below:

LTVs are between 60-65% right now with balance sheet lenders. Many lenders are pulling back and will only do select deals if you have an existing relationship with them.

Rates are looking like SOFR + 300bps.

Shoot me a PM if you want to chat further. I'm not on the lending side but our firm is heavily geared towards hotels so happy to discuss what we're seeing on the debt side.

7d
jlwso00 , what's your opinion? Comment below:

If it's your first deal, in the current economy a bank loan for a hotel will be difficult. Unless of course your company has deposits with a bank many multiples of the potential loan amount. The best bet is to run it by the debt funds that specialise in hospitality: Access Point Financial, OWS RE Finance, Stonehill etc. A month or two back, a term sheet on Core Plus with no PIP Hilton flagged in a strong market: 60% LTV @ SOFR + 375. If you are willing to place CMBS debt, it could be a little cheaper. NB: I think if I priced the deal again today, it would be at a wider spread because of the expected rate hikes.

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7d
jlwso00 , what's your opinion? Comment below:

Although I worked for banks in RE lending, currently I am not in lending - I am on the equity side investing across wide range of asset classes, including hotels

6d
MidasMulligan , what's your opinion? Comment below:

It doesn't help you out as a fund, but SBA 504 loans are still going strong in hospitality with LTVs of >80% and long-term fixed rates. Just has to be for a true small business.

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  • Analyst 2 in RE - Comm
17h

Balance sheet/debt fund money for hotels is not abundant right now. I work in CMBS and we have seen plenty of hotel borrowers go out to the entire market and come back to CMBS because debt fund money is 350+ spreads. Earlier this year, CMBS spreads tightened significantly, making CMBS the best option for hotels and office in terms of spread. Obviously, prepayment flexibility is very minimal, but the all in coupons are definitely lower than debt funds for hotel borrowers and especially office. Something to think about for a lot of equity shops…

1m
crelend , what's your opinion? Comment below:

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