Dr. Doom: Effects of the Downgrade on the Hotel Industry
By Joel Ross , President at Citadel Realty Advisors
A lot of people like to call me Dr. Doom for all of my cautious columns during the past year or so. Well, I really am not so doomsday (even now), but I think now you see the black swans that I have been forecasting have come home to roost and they are swarming and splattering everyone. Let me start by saying the S&P downgrade is not the end of the world, and is more a political statement than anything else. Nobody’s mortgage or credit card payment is going up. Treasury rates are at record lows and are likely to stay down for a long time. They are going even lower as the economy slows. Mortgage rates are at record lows. That will help housing.
Joel Ross is principal of Citadel Realty Advisors, successor to Ross Properties, the investment banking and real estate financing firm he launched in 1981. A Wharton School graduate, Ross began his career on Wall Street as an investment banker in 1965. A pioneer in commercial mortgage-backed securities, Ross, along with Lexington Mortgage, and in conjunction with Nomura, effectively reopened Wall Street to the hotel industry.More from Joel Ross