CORONAVIRUS
264 | Seeking Signs of Relief: Hoteliers wade through financial aid programs and proposals
CORONAVIRUS
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 applications with their SBA-approved lenders for the $350 billion Paycheck Protection Program.
But when hotel owners and operators will see the money is anyone’s guess as both banks and small-business owners report being overwhelmed with the filing process.
Meanwhile another group of hotel owners feels left out in the cold. These are investors holding billions of dollars in CMBS debt. Many debtors are in default with more expected as May and June mortgage payments come due with no financial intervention on the horizon.
In this episode, part 11 of Lodging Leader’s special report on the coronavirus crisis and its impact on the hotel industry, we explore the state of the SBA rescue package as well as what is or is not being done to help CMBS debtors save their businesses from default.
Resources and Links
CORONAVIRUS
-
311 | Shelters From the Norm: Hotels used for hospitals and housing face unexpected problems
A year ago, Darshan Patel, CEO of Hotel Investment Group in San Diego, California, was one of the first hoteliers in the U.S. to step up and offer properties to overwhelmed hospitals seeking places to care for COVID and non-COVID patients as well as vulnerable populations. As the crisis eases and Hotel Investment Group works to return the hotels to business, Patel is negotiating with local governments to pay for the wear and tear on the properties. Patel is not alone as many hoteliers are unexpectedly dealing with problems that state and local governments’ urgent decisions have created, including property damage, increased costs and eviction bans. This report is the second in a two-part series examining the pros and cons of opening hotels to alternative uses during the pandemic. It is part of Long Live Lodging’s special coverage of the coronavirus crisis and its impact on the hospitality industry.
-
310 | Hotels Convert to Housing: Federal COVID-19-relief funds fuel transactions
Dhruv Patel, president of Ridgemont Hospitality, in October shared a bittersweet moment with his parents, Pravin and Sima Patel, when the family business sold the first motel that Pravin had built from the ground up more than 30 years ago. But they rest assured knowing it was the right decision because the 22-room property is being converted into affordable housing for military veterans at risk of homelessness. The transaction is among hundreds taking place across the U.S. as state and local governments work with non-profit agencies to create affordable housing solutions for vulnerable populations amid the COVID-19 pandemic. In Episode 310 Long Live Lodging reports on the financial and legal aspects of what it takes to convert a hotel into long-term housing. This report is part of Long Live Lodging’s special coverage of the coronavirus crisis and its impact on the hospitality industry.