From the South Florida website: The end of strong growth in U.S. hotels’ revenue and occupancy rates could hurt loan performance for commercial mortgage backed securities as interest rates rise, Fitch Ratings reported on Monday.
Rising construction levels are an early warning indicator that a peak in the cycle has arrived. Evidence of this is in New York City, according to Fitch’s Managing Director Huxley Somerville. It is now the worst performing market in the country with regard to growth in revenue per available room. [more]