DISTRESSED DAILY: Hotel Mortgages Avoid Big Losses Despite Covid

Securities backed by hotel mortgages have fared much better through Covid than previous years, despite the downturn in tourism and ongoing uncertainty around business travel recovery, according to a new research report.

Average realized losses since March 2020 for hotel commercial mortgage-backed securities are about 23.6% of the outstanding balance, compared to average losses of 50.1% between 2010 and 2019, according to Trepp, a CMBS research firm. The report looked at more than 700 loans from 2010-2019 with a balance of more than $9 billion, as well as loans resolved with losses after March 2020. It excluded single-asset, single-borrower and ...