INVESTMENT
The state of debt financing
INDUSTRY LEADERS OFFER OPINIONS AND DIRECTION ABOUT DEBT AVAILABILITY , INCLUDING MEZZANINE AND BRIDGE FINANCING .
by JEFF WEINSTEIN , EDITOR IN CHIEF
Increasing liquidity has strengthened , but so have rates , and it will no doubt impact on the recovery of asset values and deal activity . Debt funds are the most active lenders , followed by banks , which continue to provide the lowest cost of capital even as debt fund spreads have compressed .
Leverage levels have increased to 55 % and 60 % with a bit more wiggle room available for better assets .
HOTELS reached out to experts in the hotel financing arena to get their take on the availability of debt , including mezzanine financing , bridge loans and more .
On the following pages , read commentary from leaders at Driftwood Capital , Robert Douglas , JF Capital Advisors , CBRE in Asia , and Avington Financial in London , who talk about the opportunities and obstacles to obtaining debt financing in today ’ s marketplace .