Hotels operators are filing for bankruptcy at a faster pace in the U.S. amid a resurgence of Covid-19 infections that clouds the outlook for sustained recovery. More may be on the horizon as lenders lose patience with defaulting property owners.
A unit of Eagle Hospitality Real Estate Investment Trust, which owns a portfolio of corporate, leisure and airport hotels across the U.S., filed for bankruptcy protection in Delaware on Monday amid a collapse in travel due to the pandemic. It followed Marriott Wardman Park in Washington, which filed for court protection from creditors last week, joining the bankruptcies of two hotels in Brooklyn in December and Manhattan’s Martinique New York in September.
Just two hotel companies with liabilities greater than $50 million filed for bankruptcy in all of 2020, according to data compiled by Bloomberg. That’s still the most since 2012, which saw four filings, but well below the 10 cases seen in 2009.
Lenders have been reluctant to foreclose on struggling hotels since the pandemic crushed revenues, according to Stephen Selbst, co-chair of the restructuring and finance litigation group at Herrick Feinstein.
“If you take back a hotel, you’re the mortgagee, and now all of a sudden it’s your responsibility to keep the lights on,” Selbst said. “That’s like foreclosing on a horse. You have to feed the horse.”
Still, it’s “a little surprising” there weren’t more hotel bankruptcies last year, Selbst said. “Clearly the pace of workouts in hospitality is going to increase in 2021; whether that’ll translate to bankruptcies is less obvious.”
"hotel" - Google News
January 19, 2021 at 10:35PM
https://ift.tt/3qAgvn7
Hotel bankruptcy filings rise amid Covid-19 spike - Crain's New York Business
"hotel" - Google News
https://ift.tt/3aTFdGH
https://ift.tt/2xwvOre
Bagikan Berita Ini
0 Response to "Hotel bankruptcy filings rise amid Covid-19 spike - Crain's New York Business"
Post a Comment