Manhattan’s hotel oversupply threatens $731M in CMBS loans: Morningstar
Manhattan hotel developers have overbuilt, and incomes at new and existing hotels are unlikely to hit industry projections, according to a new report from research firm Morningstar Credit Ratings.
That could mean trouble ahead for some CMBS investors, as loans worth about $731 million, roughly a fifth of the $3.68 billion Manhattan hotel-backed CMBS market, see elevated default risk over the next two years, researchers found.
Loans backed by properties such as the Flatiron Hotel at 9 West 26th Street, the Hampton Inn South Street at 320 Pearl Street in the Financial District and the MAve Hotel at 62 Madison Avenue in Nomad are among the most threatened, according to Morningstar’s projections.
- The Real Deal
- Fletcher Street Marriott Hotel
- Lam Group 25th Street Renaissance Midtown Hotel
- 1205 Broadway Virgin Hotel
- Four Seasons Hotel
- LAGUARDIA HOTEL
- HOLIDAY INN WALL STREET
- Courtyard by Marriott at Javits Convention Center
- New York
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