It was a week of high anxiety for U.S. hotel owners seeking financial relief from the federal government and the CMBS bond market. Hotel owners rushed applications to SBA-approved lenders to qualify for the agency’s Paycheck Protection Program. Some primary lenders such as JP Morgan cut off applications, saying they had met their quota as early as Monday. Meanwhile, hoteliers with CMBS loans were frustrated with attempts to seek relief, fearing a loss of capital reserves as well as triggering financial penalties and legal costs. In this update of Long Live Lodging’s special report on the coronavirus crisis and its impact on the hotel industry, we feature owners and financing experts who are feeling the pain of an economic downturn of historical proportions.
As the recognized COVID-19 outbreak in the U.S. and the nation’s subsequent shutdown approaches its fifth week, hotels and other small businesses are seeing some relief ahead. Federal financial aid is coming in the form of loans and grants from the Small Business Administration. In the past week, hundreds of thousands hotel owners have filed read more