Luxury hotel owners are at risk of defaulting on their commercial mortgages as the recession reduces occupancy rates, and the credit crunch constrains refinancing as banks and other lenders become weary of renewing existing lines. According to Realpoint LLC, a credit rating company, loans secured by more than 1,500 hotels with a total outstanding balance of $24.5 billion may be in danger of default. Realpoint LLC has put some of the biggest loans on its watch list because of late payments, according to Bloomberg. "All segments are showing signs of distress, but the luxury segment carries much higher loan balances and is more clearly affected," said Frank Innaurato, managing director of CMBS analytical services at Realpoint.
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