An interesting article from Hospitality Investor highlighting the general outlook towards lending against hospitality assets. Brad Greenway, co-head of debt and structured finance at JLL comments that there is actually “more liquidity for hospitality today than almost every other asset class”. It seems that despite Covid shutting down hotels, increasing energy costs and rising interest rates, the hotel sector's recovery is strong. Lenders clearly still view the hotel sector as an attractive place to deploy capital and the asset class is attracting traditional lenders, alternative lenders and debt funds alike.
when an asset class like offices loses attractiveness, capital has to go somewhere. It’s going to life sciences, self-storage, and data centres as well. But as these sectors are still in their infancy, it’s easier to underwrite hospitality deals, due to the maturity and transparency of the sector.
https://www.hospitalityinvestor.com/finance/hospitality-lending-what-credit-crunch
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