Many small and private hotel owners are in talks with lenders and are hoping for more government assistance to help fend off foreclosures, WSJ reported. Hotel owners got loans through the federal Paycheck Protection Program (PPP) and some have secured mortgage-payment deferrals for the past few months, but many of these lifelines are running out.
- Negotiations loom: Senate Republicans released another coronavirus-relief proposal earlier this week with more funds for the PPP and expanded liability protections for businesses, a priority for the hotel industry. Congress still needs to pass this legislation.
- By the numbers: The lodging industry’s budding recovery in June now looks impeded by the recent rise in coronavirus cases. U.S. revenue per available room fell 56% for the week of July 12-18 from a year earlier.
- Valuations begin to reflect new reality: Watermark Lodging Trust, Sunstone Hotel Investors, and Playa Hotels & Resorts have been forced to sell hotels at discount prices to raise cash. These national deals have sold for a roughly 20 to 30 percent discount to their pre-coronavirus value. [WSJ]