JPMorgan, Wells Fargo up hotel lending

New York /
Nov.November 29, 2010 09:04 AM

JPMorgan Chase and Wells Fargo are planning to increase their investments in the lodging sector after realizing that financing hotel projects in the present market isn’t as risky as financing other types of commercial real estate, Bloomberg News reported. Data from Trepp shows that lenders lost around 53 percent of their investments on non-performing hotel loans during the first nine months of this year, compared with 57 percent for office loans, 61 percent for multi-family loans, 62 percent for industrial loans and 63 percent for retail property loans. And with hotel property values on an upswing amid increased occupancy and revenue per available room rates, “right now is a particularly attractive time to be lending to the hotel sector,” said Christopher Jordan, who leads Wells Fargo’s hospitality banking division. Jon Strain, head of capital markets in JPMorgan’s commercial real estate group, said the company is also “definitely making loans on hotels.” [Bloomberg]


Related Articles

arrow_forward_ios
TF Cornerstone president Fredrick Elghanayan and 595 Dean Street (TF Cornerstone, rendering via MOSO Studio)
TF Cornerstone scores $385M loan for Prospect Heights apartment towers
TF Cornerstone scores $385M loan for Prospect Heights apartment towers
Lenders are being stingy about granting home equity lines of credit. (iStock)
Home values are up, but just try getting a line of credit
Home values are up, but just try getting a line of credit
From left: Wells Fargo’s Charles Scharf, SL Green's Marc Holliday, Goldman Sachs’ David Solomon and One Vanderbilt (Getty)
Goldman Sachs, Wells Fargo leading $2.25B refi of One Vanderbilt
Goldman Sachs, Wells Fargo leading $2.25B refi of One Vanderbilt
JPMorgan CEO Jamie Dimon and 270 Park Avenue (Getty, Google Maps)
JPMorgan Chase will embrace “flexible” design for 270 Park HQ
JPMorgan Chase will embrace “flexible” design for 270 Park HQ
David Wolkoff of G&M Realty. (Getty, 5Pointz LIC)
Wolkoff family firm snags $350M loan for 5Pointz
Wolkoff family firm snags $350M loan for 5Pointz
The “flexible hybrid model” is set to debut in July in North America (iStock)
Et tu, Ford? Automaker lets 30K workers stay home post-pandemic
Et tu, Ford? Automaker lets 30K workers stay home post-pandemic
55-15 Grand Avenue, Queens; Phil A. Belling of LBA Realty; Jamie Dimon of JPMorgan Chase (Getty, RXR/BL Architects)
LBA lands $316M loan for Amazon warehouse in Maspeth
LBA lands $316M loan for Amazon warehouse in Maspeth
 JPMorgan’s Marianne Lake (Getty, iStock)
JPMorgan walks back some mortgage constraints
JPMorgan walks back some mortgage constraints
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...