THE TREPP RESEARCH firm has created a list of the 30 commercial mortgage backed securities conduit loan packages with the highest percentage of hotel loans. In many cases the hotels have missed their April and May payments.
Following a report in April that 20 percent of all hotels had not paid on their CMBS loans that month, Trepp released the list for investors to monitor.
“It will be worth keeping a watchful eye on the following deals in the coming weeks and months as over 10 percent of their collateral has been moved to special servicing thus far,” TreppWire authors Manus Clancy, senior managing director, and Maximillian Nelson, marketing coordinator, wrote.
Of the thirty, 13 back post-crisis CMBX indices including three in CMBX 7, two in CMBX 8, five in CMBX 9, and three in CMBX 11.
“These thirteen deals have a combined outstanding balance of more than $11 billion, of which roughly $2.8 billion is represented by loans that are backed by hotel properties, which translates to an average hotel exposure of 25 percent,” Clancy and Nelson wrote. “Hotel loans pegged to these indices comprise 10.6 percent of the remaining collateral behind the top 30 conduit deals from our list and account for 43.6 percent of the total lodging portion of these deals, which make them a meaningful component of the overall hospitality CMBS market.”
Some of the top 30 loans to watch include:
- The $768 million Tharaldson Hotel Portfolio loan which became 30 days delinquent this month.
- The $125.85 million 575 Broadway loan which has been added to watchlist.
- The $95 million Broward Mall loan which went into grace period and was added to servicer watchlist.
- The $400 million Hyatt Regency Waikiki Beach Resort & Spa loan which was recently transferred to special servicing.
- The $115 million The Mark Hotel loan which backs the single-asset JPMCC 2017-MARK deal.
- The $108.8 million Embassy Suites loan which fully-comprises the single-asset JPMCC 2019-EMBS deal.