
Bloomberg has an article up about the loosening of lending for hotel properties, particularly in some urban areas like San Fran, DC, and New York.
The good news is that Wells and JP are "actively seeking" hospitality loans.
The bad news is that it's not really because the hotels are performing all that well. They're certainly not performing as well as had been hoped when those loans were originated.
It's just that they're not performing nearly as badly as other commercial real estate loans. The banks just want to improve those portfolios any way that they can. If it's lending to slightly less poorly performing properties, so be it.
Of course, it doesn't hurt that many hotels and small inns are now on the market for roughly half their value.
Still, even with the money loosening, investors are ever so shy this time around. After all, is there any reason to believe that whatever a property is selling for today that it won't be selling for significantly less in a year?
Lots of investors will just wait that out.
How will all of this impact small inns and B&Bs? It can't hurt.
Lending to B&Bs has been pretty much at a standstill for some time now and much of that is a perception problem with the banks. As their perception changes and they begin to see hospitality properties as if not a good investment at least a better investment than their other options, well, that loosening of money will spread.
And that my dear friends is good news for all of us.





















