This month’s Meeting Escrow newsletter is highlighting the devastating repercussions that COVID-19 has taken on the hospitality industry. Holding advance deposits in escrow eliminates the risks related to business interruption. Learn more about Meeting Escrow’s financial suite of risk management solutions at www.meetingescrow.com.
The American Hotel and Lodging Association (AHLA) is sounding the alarm over an anticipated wave of hotel foreclosures, citing recent data indicating that only 20% of U.S. hotels have received any debt relief from Wall Street CMBS (commercial mortgage-backed securities) lenders.
"Right now, many hotels are struggling to service their debt and keep their lights on, especially those with CMBS loans," said AHLA president and CEO Chip Rogers in a statement. "Without action to shore up commercial debt, especially CMBS loans, the hotel industry will experience mass foreclosures and permanent job losses which will snowball into a larger commercial real estate crisis impacting other segments of the economy."