Hotel industry faces historic wave of foreclosures

The hotel industry is facing a historic wave of foreclosures as the COVID-19 pandemic continues to devastate small business hotel owners and its workforce, according to a national report by Trepp.

The percentage of loans that is 30 or more days delinquent is 23.4 percent as of last month — the highest percentage on record. By comparison, the percentage of hotel loans that were 30 or more days delinquent at the end of 2019 was 1.3 percent.

From a financial perspective, the report shows $20.6 billion in hotel CMBS loans were 30 or more days delinquent as of July, compared with $1.15 billion as of December 2019. The highest volume of delinquent hotel loans during the global financial crisis was $13.5 billion. The current percentage of loans that are delinquent now exceeds the highest level during the global financial crisis by 53 percent.

In the letter sent to Congress, nearly 4,000 hotel industry leaders implored Congress to swiftly enact the HOPE Act, bipart