In an article published on February 13 in Hotel Interactive, B.A. Spignardo discusses the current lending environment in the lodging industry.
“What I am seeing is both sides are kind of at the 50-yard line. It doesn’t seem like the type of environment where lenders have the power hand and they can pick and choose their projects,” she states. Both sides are cautiously approaching deals in 2019. Lenders are trying to be active in the market, but seeking deals that are the right fit. On the flip side, it is not a borrower-crazed market.
In assessing the lending environment, Spignardo states, “I think that both lenders and borrowers/developers are running a marathon not sprinting. There’s not going to be a lot of big deals in the first quarter, but I think over the course of the year we will see money loosen up.”
Among other hotel industry trends with regard to funding projects, Spignardo emphasizes an increase in appetite for dual-branded hotel projects. “I think it’s great for a business person or travelers. You can really customize your experience and lenders are intrigued by it.”
Spignardo remained generally optimistic looking toward 2020, but did offer a note of caution, particularly regarding interest rates. “It depends on what happens with the Fed and that is so unpredictable right now. Creativity in the market is something we will definitely continue to see,” she concluded.
For the full article, click here.