Property values are falling across regions and property sectors, based on CMBS servicer loan data, according to Trepp.

For its analysis, Trepp looked at loans issued after the Global Financial Crisis that had new appraisals completed since March 2020 and where values were different than at securitization.

On average, values fell 36% for lodging properties, according to Trepp. It says the collateral properties for 335 loans totaling $8 billion had been re-appraised. The hotel loans have a cumulative appraisal reduction amount (ARA) of $673.1 million, which would imply a loss of about 8.4%. More than half, 52.2%, of all CMBS hotel loans have seen large drops in debt-service coverage ratios.

Recommended For You

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

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2025 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.

Leslie Shaver

Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.