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Hotel Sector Leads Declines in CMBS Delinquency, Special Servicing
Fitch Ratings’ U.S. CMBS delinquency rate fell six basis points to 2.32% in April from 2.38% in March. The rating agency said the decline was driven by fewer new delinquencies and continued new issuance and resolution volumes.
Resolutions totaled $604 million in April, comprised primarily of hotel (55%; $331 million) and mixed-use (15%; $90 million) loans/assets. New delinquencies TOTALED $295 million in April, down from $369 million in March and significantly below the year-to-date average of $496 million.
Approximately 3.6% of the Fitch-rated U.S. CMBS universe ($19.6 billion; 770 loans) was in special servicing as of April 2022, down from 3.7% in March.
In related news, the Trepp CMBS Special Servicing Rate fell 36 basis points in April to 5.30%. Six months ago, the rate was 7.17%, and 12 months ago it was 9.02%.
As with delinquencies, the lodging sector drove the decrease in special servicing. In April, the percentage of lodging loans with the special servicer fell 190 bps to 8.98%, down from 10.88% the month prior.
- ◦Financing
