Hotel Deals and Lending Zapped by Coronavirus at the Finish Line
Until lenders can wade through the $2 trillion U.S. stimulus package and determine valuations, hotel deals will remain on ice. Expect smaller banks to issue the first round of hotel loans on the upswing.
Heading into 2020, the hotel sector was expected to slow down, but deals were still getting financed. Then came coronavirus.
"Generally speaking, there is not a marketable number of buyers or willing sellers, and that creates a difficulty on the valuation side," LW Hospitality Advisors Chief Operating Officer Evan Weiss said. "There's always going to be value in an asset, but the question is how is all of this going to shake out?"