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Msg  8953 of 9402  at  2/18/2020 9:25:37 AM  by



From Fidelity website:

Defaults Are Rising in Sluggish New York City Hotel Market

BY Dow Jones & Company, Inc.
— 7:00 AM ET 02/18/2020

More New York City hotel owners are defaulting on their mortgages, succumbing to a crush of new supply and rising expenses.

The surge in new development has pressured room rates, while short-term rental-listing websites such as Airbnb Inc. have also gained market share.

New York's average daily room rate fell to $255.16 last year, according to research firm STR. That is down from $ 271.15 in 2014 and the lowest figure since at least 2013. A continued construction boom could push these numbers down further: 22,117 new hotel rooms were under construction or in planning as of January, according to STR.

Colony Credit Real Estate Inc. ( CLNC) recently hired a brokerage firm to sell the mortgage on the 1,331-room Row Hotel near Times Square at a loss, according to people familiar with the matter. Colony Credit said in a 2018 public filing that the loan package had a principal balance of $260.2 million.

The loan could now sell for as little as $50 million, say people familiar with the matter.

The debt, which is secured by a long-term lease on the hotel rooms, has been in default since 2018 because income from the rooms isn't enough to cover debt payments and rising expenses, according to filings with the Securities and Exchange Commission and people familiar with the matter.

Remainder not copied. I'm too lazy to try to find current book value from sec filings because it ain't gunna change the outcome.

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Msg # Subject Author Recs Date Posted
8955 Re: CLNC LT2 0 2/18/2020 10:25:39 AM
8958 Re: CLNC Dooba13 0 2/19/2020 9:00:21 AM

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