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Gordon: Investors Stepped Back, Refinancing is Trend

NEW YORK CITY- Mark Gordon, a managing partner in Sonnenblick-Goldman's International Lodging and Leisure Group, says there is unmistakably a slowdown; however, capitalization rates have not changed significantly, and hotels here are performing well.

By Amy Vaughn | Updated on May 21, 2001

NEW YORK CITY-”There has been a reduced amount of aggressive buyers” in the hotel sector Mark Gordon, a managing partner in Sonnenblick-Goldman’s International Lodging and Leisure Group, tells GlobeSt.com. He also notes though, “New York City hotels are still performing extremely well.” Rather than looking to sell, he adds, the trend is moving toward refinancing.

“The market is very competitive and there is strong debt capital,” he says. “First mortgages and mezzanine capital will likely fuel transactions.

“Clearly there has been a slowdown even here in New York,” Gordon continues, “and investors have taken a step back, but we are not seeing significant adjustments in pricing of properties. I don’t think that’s appropriate. Also, we’re not seeing significant changes in capitalization rates.”

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