Ballooning Supply Looms Over $3.68 Billion in CMBS Backed by Manhattan Hotels
June 02, 2016
Morningstar Credit Ratings, LLC is concerned that the burgeoning hotel-room supply could increase risk for the $3.68 billion of fixed-rate loans backed by Manhattan hotels and packaged in commercial mortgage-backed securities that we monitor. Although Manhattan is one of the strongest markets in the U.S. for hospitality properties, we believe that demand growth could miss most industry experts’ projections. While delinquent and specially serviced loans account for just 2.8% of these loans, Morningstar identified another 14 loans, with a combined balance of $730.9 million, with debt service coverage ratios, or DSCRs, below 1.2x, elevating default risk.
Securities Disclaimer
This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. EB5Projects.com LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.
