Kroll Bond Rating Agency (KBRA) releases research on CMBS hotel chain delinquencies. CMBS conduit lodging delinquencies continue to decline from early pandemic highs but remain elevated at 19.5%. A closer review of these loans indicates that levels continue to be negatively influenced by the higher delinquency rates of hotel chains that focus on business and conference travel.

In this report, we review delinquencies by chain scale, hotel chain, and brand. Within the chain scales, the upper upscale chain had the highest delinquency rate (23% of outstanding principal balance), with Sheraton, Marriott, and Hilton posting some of the higher delinquency rates (up to 46.8%). The high delinquency rate parallels the upper upscale chain’s revenue per available room (RevPAR) performance, which also had the largest RevPAR decline (38.7%) among the chain scales when comparing June 2019 to June 2021.

Click here to view the report.

Related Publications

• CMBS Trend Watch: July 2021
• Freddie Mac K-Series: Loan Default and Loss Study
• KBRA CMBS Loan Performance Trends: July 2021
• KBRA CMBS Loss Compendium Update: June 2021

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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