The spread of COVID-19 created major disruptions to economies around the globe, including the U.S., which at the time of this writing has more confirmed cases and deaths due to COVID-19 than any other country in the world. The severe, but necessary, reaction in the U.S. has been to enforce social distancing and shelter-in-place orders, which triggered an abrupt economic meltdown of unknown duration causing surging unemployment, declining stocks and uncertainty across all sectors. Real estate, with its inherent reliance on people congregating, has been particularly affected be it in lodging, hospitality, restaurant, retail, multifamily or office buildings.
In this whitepaper you will learn:
What qualifies for impairment in the hospitality industry?
Travel restrictions, event cancellations and mandatory closures directed by state and local governments have caused considerable repercussions on revenue across the lodging and hospitality sectors. As a result, many owners have defaulted (or are near default/in special servicing) on their mortgage and/or have diminished their cash flow. If COVID-19 has caused your hotels in your portfolio to temporarily or permanently close and you’ve experienced a decrease or loss of business, an impairment evaluation should be considered.