Hotel Loans and Hotel Financing Are Disappearing - November 25, 2008
An alternative to hotel loans is credit cards and loans from credit cards. There are currently only a few choices on hotel loans. Possibly 90% of all conventional hotel loan programs are gone. Deals over $3,000,000 are taking the worst of it, flagged or unflagged, conventional or nonconventional.
A lot of readers are alert; the problems on the commercial secondary market are the instant reason of this mess. Few banks used to be giving hotel loans and a lot of substitutes are used to funding and selling the hotel debt off into the secondary market.
Currently while there are especially few buyers, banks have to moreover pass on the deal or fund it and hold onto the loan in their balance sheet for the long term. (more…)