The Real Deal Miami

1,500 luxury U.S. hotels at risk of default

September 28, 2009 02:23PM

Luxury hotels in the U.S. are having a tougher time financially than average rate hotels, according to a report from RealPoint, a commercial mortgage-backed securities analysis group. Frank Innaurato, managing director of RealPoint, told Bloomberg that 1,500 luxury hotels in the U.S. are at risk for default and that widespread reduction of both leisure and business travel isn’t helping matters. What’s worse, Innaurato said, is that the financial stakes with luxury hotel mortgages are greater. “The size of the loans on these properties… are very high and can lead to heightened default risk,” Innaurato said.