Trepp Research: The Road to Recovery for the Hard-Affected Hospitality Industry: Vaccines, Boost, and Persistence
NEW YORK (PRWEB)
April 07, 2021
Trepp, a leading provider of data, information and technology solutions to the structured finance, commercial real estate and banking markets, released a research report on the hospitality industry. The full report can be accessed here: https://info.trepp.com/hotel-report-april-2021-pr.
With a quarter of 2021 underway, it’s time to re-examine the accommodation industry ahead of what is shaping up to be the start of gradual re-openings and a return to tourism across the United States. This report provides an update on the accommodation industry following Trepp’s research from November 2020.
“At this point in 2021, the economy appears to be showing signs of continued improvement,” said Maximillian Nelson, Trepp research analyst. “The Federal Reserve, barely out of a $ 1.9 trillion relief bill, has pledged to keep interest rates low and to maintain an accommodative monetary policy that could, in turn, affect the commercial real estate sector, which has been severely affected by the crisis. Coronavirus pandemic. “
Following the recent downward trend in the overall delinquency rate, the accommodation sector also recorded in February its largest drop in the delinquency rate since October 2020, dropping 272 basis points to 16.38%. For March, the headline rate fell further, falling 41 basis points to 15.95%.
The rate for special accommodation services also edged down in March, to 24.25%. The rate is consistently the highest among the commonly tracked CRE property subtypes, the concentration being in the full service, limited service and “other” subtypes, with special service rates all above 20%.
Throughout 2020, Trepp also tracked the number of loans that had undergone valuation cuts. According to the TreppInsights Business Intelligence tool, more than 440 loans have seen their value reduced since 2020, which represents more than $ 1.3 billion in reduction in February 2021.
For more details, such as delinquency rates and special service rates of recent months, largest MSAs by unpaid hosting balance, number of hosting loans in grace period or beyond, Newly Listed Hosting Loans by State etc, download Trepp’s report here: https://info.trepp.com/hotel-report-april-2021-pr.
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Trepp, founded in 1979, is a leading provider of data, information and technology solutions to the structured finance, commercial real estate and banking markets. Trepp provides primary and secondary market participants with the solutions and analytics they need to increase operational efficiency, information transparency and investment performance. From its offices in New York, San Francisco and London, Trepp offers its clients products and services to support trading, research, risk management, oversight and portfolio management. Trepp is a 100% owner of Commercial Real Estate Direct, the premium news and information source for CRE industry professionals. Trepp is 100% owned by Daily Mail and General Trust (DMGT). For more information, visit trepp.com.
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