The hospitality debt market is becoming more competitive with leverage levels increasing.
Debt funds are leading the way with these offerings and while new acquisitions are their preference, they will quote refinancings, according to the Hospitality Debt Market Commentary from JLL's Hotel Investment Banking team
For the best assets, debt funds are pushing leverage to 75% or 80%. JLL says debt fund leverage has increased by 5% to 10% since last Fall, while spreads have dropped 25 to 75 basis points in the same timeframe.
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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.
