Following HREC’s presentation of key insights from the annual mortgage bankers conference, Hotel Investment Today surveyed investors in the business to get their thoughts on the state of lending.
NATIONAL REPORT: HREC Capital Markets, having spoken with numerous capital sources at the annual Mortgage Bankers Association Conference, expressed optimism for hotel debt originations in 2024.
HREC shared the most important lessons it had learned from the event, and Hotel Investment Today got in touch with investors to find out what they thought about the state of hotel finance today. These are the outcomes.
Origins of Debt
We started by asking investors if they thought there will be a rise in hotel debt originations in 2024.
CEO of Atlanta’s Peachtree Group is Greg Friedman.”Activity is picking up in our commercial real estate credit pipeline, giving us a glimpse of what’s to come. We have invested about $700 million in loans over the last three months, and we analyze new opportunities every week.
“It is probable that originations will see a large spike given the record volume of aging loans, which might surpass $1 billion this year alone. Although it’s unclear who will receive such originations, banks have been paring down their holdings in commercial real estate for several years. Although the securitization industry is expanding, Peachtree Group and other private credit lenders will continue to fill the gap.
The over-allocation of new originations to hotels by lenders is an attempt to offset the decreases in loan volumes elsewhere. Until rates significantly decline or unless cap rates on other asset classes are implemented, this should persist until 2024.