Coronavirus Takes a Bite Out of Big Apple Hotels

Among hotels backing securitized commercial mortgages, New York City has the greatest exposure after Las Vegas, with some $1.91 billion in hotel loans. As the Coronavirus Disease (COVID-19) pandemic forced office workers to work out of their homes, businesses to shut down, and travel to come to a standstill, commercial mortgage-backed securities (CMBS) loans backed by hotels have suffered. New York hotels have been hit particularly hard, with more than half in special servicing and a delinquency rate approaching 40%.