Jay Stein, CEO of Dream Hotel Group, outlines how his hotels went through coronavirus lockon and what procedures they have implemented to follow CDC guidelines.
The hotel industry, one of the hardest hit by the coronavirus pandemic, has faced historic challenges for mortgage payments – and called on Congress to set up a federally supported source of relief.
The percentage of hotel loans in the commercial mortgage-secured market of at least 30 days abused in July was 23.4 percent, which is the highest percentage on record, according to a report by Trepp. In the same period last year, the number of loans plus 30 days of abuse was just 1.34 percent.
While about $ 13.5 billion was misappropriated in loans during the financial crisis, the figure of 23.4 percent represents $ 20.6 billion in hotel loans.
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On Tuesday, sector groups wrote a letter to Congress asking for commercial debt relief, especially since many commercial mortgage lenders are unable to obtain transition plans from service providers.
“Without action, an unusual wave of prejudices from the commercial real estate will ripple and cause thousands of job losses for thousands and the loss of billions in tax revenue to local municipalities supported by hotels,” the groups wrote in the letter.
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As a means of helping the situation, groups are asking Congress to pass the HOPE Act, which would provide relief to small businesses in the commercial real estate market. The two-party legislation would create a federal funding source to help business owners keep up with mortgage payments.
Throughout the coronavirus pandemic, the accommodation sector has taken a huge hit as a result of measures and social distancing measures that have kept most people at home and have not taken any planned trips.
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