HOTELIER CONFIDENCE still high despite banking crisis
BANK COLLAPSES , ECONOMIC FRAGILITY STILL HASN ’ T SHAKEN THE CORE OF THE HOTEL INDUSTRY .
By DAVID EISEN , EDITOR IN CHIEF
ATLANTA — It was on every person ' s mind as they filled into the ballroom of the Marriott Marquis here : What did the collapse of two regional U . S . banks mean for commercial real estate investment , specifically hotel assets ?
Silicon Valley Bank and Signature Bank collapsed in the same week and another bank , First Republic , wobbled but stayed upright . Small , midsize and regional banks make up the bulk of commercial real estate loans in the U . S . and any distress to them — like a run — has dire consequences for both builders and buyers . Some 80 % of all commercial real estate loans are made by smaller banks .
“ Banking is a confidence issue and people pulling money out exacerbates problems ,” said Justin Knight , CEO and director of Apple Hospitality REIT , a publicly traded owner of hotels , from select-service through upscale .
“ The lifeblood of commercial real estate is local banks ,” said Scott Trebilco , senior managing director , real estate for Blackstone . “ It will have an impact on liquidity , on the level of activity and take
10 hotelsmag . com May 2023