Trepp Research: The Road to Recovery for the Hard-Hit Hotel Sector: Vaccines, Stimulus, & Perseverance

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Trepp, a leading provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets, has released a research report on the lodging hotel sector. The full report can be accessed here:

With a quarter of 2021 underway, it is time to re-examine the lodging sector before what looks to be the beginning of gradual re-openings and a return to tourism across the United States. This report provides an update on the lodging sector following Trepp’s research from November 2020.

“At this point in 2021, the economy looks to show signs of continued improvement,” said Maximillian Nelson, Trepp research analyst. “The Federal Reserve, fresh off the heels of a $1.9 trillion relief bill, is committed to keeping interest rates low and maintaining an accommodative monetary policy which could, in turn, affect the lodging commercial real estate sector, which has been greatly impacted by the coronavirus pandemic.”

Following the recent downward trend of the overall delinquency rate, in February the lodging sector also posted its largest drop in the delinquency reading since October 2020, dropping 272 basis points to 16.38%. For March, the overall rate fell even further, dropping 41 basis points to 15.95%.

The lodging special servicing rate also dropped slightly in March, to 24.25%. The rate is still the highest among the commonly tracked CRE-property subtypes, with the concentration being in the full-service, limited-service, and ‘other’ subtypes, with special servicing rates all reading over 20%.

Throughout 2020, Trepp also tracked the number of loans that had seen appraisal reductions. According to the TreppInsights Business Intelligence tool, over 440 loans had their value reduced since 2020 – amounting to over $1.3 billion in reductions as of February 2021.

For additional details, such as lodging delinquency and special servicing rates from the last few months, the largest MSAs by lodging delinquent balance, the number of lodging loans in grace period or beyond, newly watchlisted lodging loans by state, and more, download Trepp’s report here:

For daily CMBS and CRE commentary, follow @TreppWire on Twitter.

About Trepp

Trepp, founded in 1979, is a leading provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets. Trepp provides primary and secondary market participants with the solutions and analytics they need to increase operational efficiencies, information transparency, and investment performance. From its offices in New York, San Francisco, and London, Trepp serves its clients with products and services to support trading, research, risk management, surveillance, and portfolio management. Trepp wholly owns Commercial Real Estate Direct, the source for high-end news and information to professionals in the CRE industry. Trepp is wholly owned by Daily Mail and General Trust (DMGT). For more information, visit

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