Search
 

Hotel Borrowers In Midst of Good Times

NEW YORK CITY-Conference panelists forcasted a tightening of the credit cycle and an end to the good times on the horizon.

By Maria Wood | Updated on April 12, 2007

NEW YORK CITY-It’s a great time to be a borrower if you are acquiring or refinancing lodging properties. But how long will the good times last? That was the question debated during the first RealShare Hotel Investment & Finance Summit held here yesterday. The conference was co-sponsored by Real Estate Media and HREC.

In a panel titled “Let’s Get Creative: Different Deal Structures for Different Deals,” and moderated by Kenneth Balin, managing director and principal at AMC Delancey Group Inc., Mark Mutkoski, principal of True North Management Group, a mezzanine lender, stated that spreads on small loans are almost as tight as on large loans, a sign, he suggested, that the sector is at the top end of the credit market. He also said that rating agencies are beginning to balk at some deals. “It’s a great time to be a borrower, but it won’t last,” he said.

Andrew Benioff, managing partner at BlueStone Real Estate Capital, noted that underwriting is easier today due to more transparency within the real estate industry. However, he added that because of competition on both the debt and equity side, “people are stretching to put money on the street.” Further, spreads on B pieces have “slimmed considerably,” he said.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.