National + Distressed Assets | May 6, 2022

Lodging properties saw the biggest declines in both CMBS delineuncy and CMBS special servicing in April 2022

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.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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