U.S. hotel construction loans back, hoteliers say

TRD MIAMI /
May.May 09, 2013 01:00 PM

Big-time hoteliers are seeing construction lending come back strong, but less-established developers are struggling because of the strict standards that banks still have in place, the Wall Street Journal reported.

Hotel construction is a risky venture for lenders, but Marty Collins of Gatehouse Capital Corp. told colleagues at a conference this week that Gatehouse and other hotel developers are seeing support in financing. A key factor for change in lending is the issuance of commercial mortgage-backed securities, which are expected to double this year to $80 billion to $100 billion, Trepp LLC told the newspaper.

Construction is surprisingly ramping up in full-service hotels, which feature restaurants and spas, said Alison Cumberland, senior vice president at Marriott.

Because to the lack of new hotel projects since the recession, figures are on par with 2007. Average occupancy is at 57.7 percent, while the average nightly rate is $108.31, according to Smith Travel Research data reported by the Journal.

Research firm Lodging Econometrics predicts the industry will inch up its room base by 1.1 percent this year and 1.4 percent the next. Last year’s growth rate was 0.9 percent, the Journal said. [WSJ]Mark Maurer


Related Articles

arrow_forward_ios
5775 Collins Avenue and 1775 James Avenue

Miami Beach orders 57 Ocean and Hotel 18 construction sites to shut down

Rendering of 850 Le Jeune and Century Homebuilders’ Sergio Pino

Sergio Pino re-opens construction site after workers test positive for Covid-19

Miami-Dade cracks down on social distancing at construction sites

Miami-Dade cracks down on social distancing at construction sites

Mayor, Miami-Dade County, Carlos A. Giménez (Credit: Ryan Holloway/ Armando Rodriguez Miami-Dade County Photographers)

Miami-Dade orders all non-essential businesses closed due to coronavirus

Miami-Dade Permitting and Inspection Center

Coronavirus case shuts down Miami-Dade permitting center until Monday, property appraiser closes office to public

Peter Dyga and MiMo Bay Apartments construction site

Social distancing? Coronavirus not stopping South Florida construction projects — for now

Florida Senate Passes Construction Retention Bill (Credit: iStock)

Florida Senate passes bill to lower retainage on public construction projects

(Credit: iStock)

South Florida residential construction starts jump 72% in January

arrow_forward_ios
Loading...