Kroll Bond Rating Agency (KBRA) today released its briefing on the 2017 NYU International Hospitality Industry Investment Conference, which was held on June 5th and 6th in New York City. In the report, KBRA highlights key takeaways from the conference, which include the following:

  • The U.S. lodging industry continues to perform well, enjoying 86 months of RevPAR growth as of April 2017. Record demand levels driven by growth in the middle class and increased international travel, coupled with limited additions to supply in most major markets, have resulted in continued performance improvements, albeit at slowing growth rates.
  • Currently, lodging industry leaders remain cautiously optimistic as the industry continues to face a number of headwinds.
  • Political turmoil and the anti-immigration rhetoric of the current administration is a significant concern for the travel industry.
  • Capital markets have come back strong in the last 45 days with CMBS, insurance companies and balance sheet lenders competing for business. Although loan proceeds are down, with spreads narrowing and interest-only periods elongating, industry leaders noted that CMBS debt markets are wide open and terms are "phenomenal", even as lenders remain disciplined.

Please click here to access the report.

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

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