From the desks of the Hotel News Now Editorial staff:
- What CMBS loan servicers are seeing in the downturn
- US stock futures slide
- Australia cuts arrivals by 50%
- Thousands of hotels could close in September
- L’Ermitage hotel for sale
What CMBS loan servicers are seeing in the downturn: Experts on a recent Meet the Money webinar discussed CMBS special servicing and what it means for hoteliers in the current pandemic, HNN’s Bryan Wroten writes.
Curt Spaugh, director in the special servicing division at SitusAMC, said it will be more difficult to deal with a CMBS special servicer than a bank.
“With a bank, borrowers likely have an established relationship, including with the person who helped originate the loan, and the asset is on the bank’s books,” Wroten writes.
U.S. stock futures slide: U.S. stock futures opened lower Friday and “investors piled into the safety of government bonds as jitters mounted about the recovery from COVID-19 lockdowns,” The Wall Street Journal reports.
S&P 500 stock futures rose less than 0.1% in early trading, and European stocks were a little higher with the Stoxx Europe 600 index up 0.7%.
Brian O’Reilly, head of market strategy for Mediolanum International Funds, told the news outlet that the virus hasn’t gone away and will impact the economy and social distancing until a vaccine is created.
Australia cuts arrivals by 50%: In reaction to a surge in COVID-19 cases, Australia has plans to reduce international arrivals by 50%, Forbes reports.
Starting Monday, the number of citizens who are allowed to enter Australia will go from 8,000 to 4,000 per week.
Quarantine hotels will also no longer provided for free, with travelers footing the bill.
Thousands of hotels could close in September: The American Hotel & Lodging Association’s Chip Rogers said 8,000 hotels could close in September if business travel doesn’t pick up for what’s normally a busy season, Wane.com reports.
“If business travel doesn’t pick up by this fall, and the (Paycheck Protection Program) funding has run out, then the really bad problem that exists today is going to result in massive foreclosures for hotels,” he told the news outlet.
Rogers is asking Congress to give hoteliers a low-interest loan so they can stay afloat.
L’Ermitage hotel for sale: The Viceroy L’Ermitage Beverly Hills, previously owned by Malaysian investor Jho Low, who has been accused of embezzling money from his country, is currently up for auction, The Los Angeles Times reports.
The famous hotel is known for hosting celebrities such as Elizabeth Taylor, Richard Burton and Laurence Olivier. Federal representatives say the property will sell for $100 million or more at a 19 August auction.
Compiled by Danielle Hess.