Nearly 20% of all lodging CMBS loans are categorized as either “in grace period” or “beyond grace period,” according to data from Trepp, a New York-based research firm that tracks the CMBS market.
The coronavirus outbreak is already causing a spike in commercial mortgage delinquencies in the hotel and retail sectors, a new analysis finds.
The data speaks to a bigger fear haunting the commercial real estate industry: That Covid-19 could spark an even bigger mortgage crisis than the one in 2008, which devastated American homeowners.
Commercial mortgage-backed securities, or “CMBS,” are vehicles that take the loans for properties such as apartment buildings, hotels, office buildings and shopping malls and package them into one investment product. CMBS loans account for about 15% to 20% of all commercial real estate mortgages today. Other lenders include insurance providers and banks.
Hotel lodging was among the first industries to start to feel the pain of restrictions from coronavirus. Even before state governments began imposing stay-at-home orders, businesses curtailed travel. And large gatherings like conventions and concerts were canceled.
