Room Rates Trump Occupancy In Latest Hotel Loan Deals
Law360, New York (January 29, 2014, 6:16 PM EST) -- Prompted by concerns that a limited supply of lodging may be skewing occupancy rates across the country, lenders are putting a new focus on whether a hotel can pull in a higher average daily room rate than its rivals before signing off on a loan deal, experts say.
Traditionally, occupancy rates would shoulder more of the weight when calculating a good candidate for a loan. But with hotel room supply still limited after years of a dry construction pipeline, lenders and creditors believe most occupancy levels could be skewed and are instead placing more emphasis on ADR, experts said.
"Lenders would rather see you...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!