UNITED STATES For the first time in 33 months, loan delinquencies declined on U.S. commercial mortgage-backed securities, with a large assist from hotels, according to the latest data from Fitch Ratings.
CMBS delinquencies dropped 88 basis points to 7.78% due largely to the resolution of seven loans greater than US$100 million, including the US$4.1 billion Extended Stay America loan. At the same time, hotel delinquencies declined to 14.14% from 21.31%, the largest drop ever recorded of any CMBS asset type by Fitch.
“Whereas hotel-backed loans saw the most rapid performance deterioration, now the opposite is true,” says Fitch Managing Director Mary MacNeill. “Hotel loans are now the most well-positioned to recover quickly when business and consumer spending resume and the economic recovery gains traction.”