January In U.S. Still Down Across Measurements - 2010-02-23 Hotels Magazine
January In U.S. Still Down Across Measurements
PRESS RELEASE -- Hotels, 2/23/2010 1:37:42 PM
HENDERSONVILLE, Tennessee-The U.S. hotel industry posted declines in all three key performance measurements during January 2010, according to data from STR.
In year-over-year measurements, the industry's occupancy ended the month virtually flat with a 0.4-percent decrease to 45.1 percent. Average daily rate dropped 7.1 percent to finish the month at US$93.93. Revenue per available room for the month decreased 7.4 percent to finish at US$42.35.
"January's results continue the pattern of demand improvement that began toward the end of 2009," said Mark Lomanno, president of STR. "We expect this trend of positive demand growth to continue throughout most of this year. Hopefully, this will result in a firming of prices before too many more months go by."
Among the Chain Scale segments, three of the seven segments reported occupancy increases: the Luxury segment (+9.4 percent to 57.2 percent); the Upper Upscale segment (+5.4 percent to 56.1 percent); and the Upscale segment (+4.0 percent to 53.1 percent).
Among the Top 25 Markets, Boston, Massachusetts, reported the largest occupancy increase, up 18.3 percent to 48.9 percent, followed by Detroit, Michigan (+11.2 percent to 44.5 percent), and Miami-Hialeah, Florida (+10.6 percent to 74.6 percent). Houston, Texas, experienced the largest occupancy decrease, due to the lingering effects of Hurricane Ike, falling 15.7 percent to 49.0 percent.
Los Angeles-Long Beach, California, ended the month virtually flat in ADR growth with a 0.1-percent increase to US$119.80. Washington, D.C., which hosted President Barack Obama's presidential inauguration on 20 January 2009, posted the largest ADR decrease, falling 27.2 percent to US$132.65. Tampa-St. Petersburg, Florida, which hosted Super Bowl XLIII on 1 February 2009, also reported a large ADR decrease, falling 25.4 percent decrease to US$94.27.
Boston experienced the largest RevPAR increase, rising 11.9 percent to US$56.61. Three other markets reported RevPAR increases for the month: Los Angeles-Long Beach (+6.1 percent to US$74.07); Miami-Hialeah (+4.2 percent to US$124.05); and Atlanta, Georgia (+2.5 percent to US$43.85). Washington, D.C., posted the largest RevPAR decrease, falling 32.3 percent to US$64.19, followed by Tampa-St. Petersburg (-27.6 percent to US$48.29) and Houston (-23.8 percent to US$42.66).
Wednesday, February 24, 2010
Wednesday, February 17, 2010
STR: US hotel industry ends '09 with double-digit RevPAR drop
STR: US hotel industry ends '09 with double-digit RevPAR drop
22 January 2010 9:53 AM
By Rachael Spann
Communications Coordinator, STR
HotelNewsNow.com columnist
HENDERSONVILLE, Tennessee—Revenue per available room fell 16.7 percent to US$53.71 during 2009, according to year-end reports from Smith Travel Research.
The industry’s occupancy fell 8.7 percent to 55.1 percent for the year and average daily rate dropped 8.8 percent to US$97.51.
“Good riddance to 2009, a year which we believe will go down as the worst in the modern hotel industry,” said Mark Lomanno, president at STR. “The combination of a distressed economy in conjunction with panic pricing drove RevPARs down to levels that were virtually incomprehensible just a year and a half ago. I look for a significant improvement in the key hotel performance indicators in 2010.”
None of the Top 25 Markets reported year-end increases in any of the three key metrics.
Houston, Texas, ended the year with the largest occupancy decrease, falling 17.0 percent to 55.8 percent due to the lingering effects of Hurricane Ike.
New Orleans, Louisiana, was the only market to end the year with an ADR decrease of less than 5 percent, falling 4.0 percent to US$113.52. New York, New York, reported the largest ADR decrease, falling 21.8 percent to US$215.14.
New York also ended the year with the largest RevPAR decrease, down 26.3 percent to US$166.11, followed by Phoenix with a 25.3-percent decrease to US$55.36.
Source: STR
December 2009
During December 2009, the industry’s occupancy fell 1.9 percent to end the month at 44.2 percent in year-over-year measurements. ADR dropped 6.0 percent to finish the month at US$93.73. RevPAR for the month decreased 7.8 percent to finish at US$41.46.
“While we were encouraged by the positive demand performance the industry experienced in December, we believe this may be more the result of an easy comparison to last year and the timing of New Year’s Eve,” Lomanno said. “In the coming months, we hope to see similar results.”
Among the chain-scale segments, two segments ended the month with occupancy increases. The luxury segment rose 5.0 percent to 54.6 percent, and the upper-upscale segment was up 2.6 percent to 52.2 percent. The Upscale segment ended the month virtually flat in occupancy with a 0.1-percent decrease to 50.0 percent.
Among the top 25 markets, New Orleans led the increases in all three key metrics. The market’s occupancy rose 11.0 percent to 53.4 percent, ADR increased 16.4 percent to US$120.12, and RevPAR jumped 29.2 percent to US$64.10.
Aside from New Orleans, two markets experienced occupancy increases of more than 5 percent: Oahu Island, Hawaii (+7.1 percent to 72.5 percent), and Tampa-St. Petersburg, Florida (+5.4 percent to 47.1 percent). Houston posted the only double-digit occupancy decrease, falling 21.4 percent to 44.7 percent.
New Orleans was the only market to report an ADR increase. San Francisco/San Mateo, California, posted the largest ADR decrease, falling 17.4 percent to US$117.39, followed by Houston (-13.3 percent to US$81.73), Chicago, Illinois (-13.2 percent to US$99.01), and Phoenix (-13.1 percent to US$89.35).
Norfolk-Virginia Beach ended the month flat in RevPAR at US$23.99. Houston reported the largest decline in RevPAR, which fell 31.8 percent to US$36.50, followed by San Francisco/San Mateo with a 22.1-percent decrease to US$69.90.
22 January 2010 9:53 AM
By Rachael Spann
Communications Coordinator, STR
HotelNewsNow.com columnist
HENDERSONVILLE, Tennessee—Revenue per available room fell 16.7 percent to US$53.71 during 2009, according to year-end reports from Smith Travel Research.
The industry’s occupancy fell 8.7 percent to 55.1 percent for the year and average daily rate dropped 8.8 percent to US$97.51.
“Good riddance to 2009, a year which we believe will go down as the worst in the modern hotel industry,” said Mark Lomanno, president at STR. “The combination of a distressed economy in conjunction with panic pricing drove RevPARs down to levels that were virtually incomprehensible just a year and a half ago. I look for a significant improvement in the key hotel performance indicators in 2010.”
None of the Top 25 Markets reported year-end increases in any of the three key metrics.
Houston, Texas, ended the year with the largest occupancy decrease, falling 17.0 percent to 55.8 percent due to the lingering effects of Hurricane Ike.
New Orleans, Louisiana, was the only market to end the year with an ADR decrease of less than 5 percent, falling 4.0 percent to US$113.52. New York, New York, reported the largest ADR decrease, falling 21.8 percent to US$215.14.
New York also ended the year with the largest RevPAR decrease, down 26.3 percent to US$166.11, followed by Phoenix with a 25.3-percent decrease to US$55.36.
Source: STR
December 2009
During December 2009, the industry’s occupancy fell 1.9 percent to end the month at 44.2 percent in year-over-year measurements. ADR dropped 6.0 percent to finish the month at US$93.73. RevPAR for the month decreased 7.8 percent to finish at US$41.46.
“While we were encouraged by the positive demand performance the industry experienced in December, we believe this may be more the result of an easy comparison to last year and the timing of New Year’s Eve,” Lomanno said. “In the coming months, we hope to see similar results.”
Among the chain-scale segments, two segments ended the month with occupancy increases. The luxury segment rose 5.0 percent to 54.6 percent, and the upper-upscale segment was up 2.6 percent to 52.2 percent. The Upscale segment ended the month virtually flat in occupancy with a 0.1-percent decrease to 50.0 percent.
Among the top 25 markets, New Orleans led the increases in all three key metrics. The market’s occupancy rose 11.0 percent to 53.4 percent, ADR increased 16.4 percent to US$120.12, and RevPAR jumped 29.2 percent to US$64.10.
Aside from New Orleans, two markets experienced occupancy increases of more than 5 percent: Oahu Island, Hawaii (+7.1 percent to 72.5 percent), and Tampa-St. Petersburg, Florida (+5.4 percent to 47.1 percent). Houston posted the only double-digit occupancy decrease, falling 21.4 percent to 44.7 percent.
New Orleans was the only market to report an ADR increase. San Francisco/San Mateo, California, posted the largest ADR decrease, falling 17.4 percent to US$117.39, followed by Houston (-13.3 percent to US$81.73), Chicago, Illinois (-13.2 percent to US$99.01), and Phoenix (-13.1 percent to US$89.35).
Norfolk-Virginia Beach ended the month flat in RevPAR at US$23.99. Houston reported the largest decline in RevPAR, which fell 31.8 percent to US$36.50, followed by San Francisco/San Mateo with a 22.1-percent decrease to US$69.90.
Friday, February 12, 2010
Fitch: Average loan size in special servicing increases
Fitch: Average loan size in special servicing increases
12 February 2010 8:29 AM
HNN Newswire
Fitch Ratings' U.S. CMBS Market Trends highlights and trends
Average Loan Size in Special Servicing Increasing
Fitch Ratings reports the average loan size for loans moving into special servicing has increased 2.4 times from a year ago to $17.2 million. Five of the loans newly transferred in January had balances in excess of $100 million. The larger loan balances have been a factor in the rise in Fitch Ratings' loan delinquency index (LDI).
Within the agency's rated universe of $452.9 billion, there are 621 loans greater than $100 million ($136 billion). Of these loans, 558 or 93% by dollar balance were securitized in 2005 or later vintages when underwriting practices began to deteriorate. Currently, 88 of the 558 are at the special servicer and 87 are considered Fitch loans of concern . Should these loans of concern default, an additional $18 billion would move to special servicing.
Fitch Ratings tracks the loans that move into special servicing on a daily basis for the 473 transactions in its portfolio. In January, 248 loans totaling $4.27 billion moved into special servicing. This brings a total of 2,880 loans, representing 10.4% of Fitch's rated universe by dollar balance in special servicing. Of the loans transferred in January, 55% were due to imminent default and 35% were due to monetary default.
The property type with the largest influx in January was retail at $1.4B or 33% of the January transfers. The largest of the new transfers was the $550 million Palisades Center retail loan in the COMM 2005-FL10 transaction. The loan, which is collateralized by a two million square foot super regional center in West Nyack, NY, transferred for imminent default as it approaches its final maturity without available extensions or a refinancing commitment. Property performance remains stable with the most recent servicer reported occupancy at 100% as of September 2009 and the most recent reported debt service coverage ratio is 2.25 times as of year end 2008. The transfer of the loan highlights the continued limited liquidity available to refinance large loans even when they are performing.
The distribution of property types in special servicing are:
•Hotel: 275 loans totaling $11.0 billion, out of a universe of 2,131 loans, $49.3 billion
•Multifamily: 872 loans totaling $9.8 billion, out of a universe of 9,320 loans, $62.2 billion
•Office: 509 loans totaling $7.5 billion, out of a universe of 6,559 loans, $141.5 billion
•Retail: 842 loans totaling $15.0 billion, out of a universe of 12,837 loans, $127.3 billion
Fitch Ratings continues to maintain a negative outlook for all property types as performance of commercial properties generally lags the economy. Hotel loan defaults, especially luxury brands, which have been particularly hard hit by the recession, will continue to outpace defaults of multifamily, retail, and office properties in the near term. Currently 22% of the hotel loans within The agency's portfolio are in special servicing, followed by 16% of multifamily loans, 12% of retail loans, and only 5% of office loans. Of the hotel loans transferred to special servicing in 2009, 89% were due to imminent default and many later became delinquent.
Contact: Mary MacNeill +1-212 908-0785
View the chart of the largest rated specially serviced loans
New Issuance
GTP Towers Issuer, LLC Global Tower Series 2010-1
Fitch Ratings has issued a presale report on GTP Towers Issuer, LLC Secured Tower Revenue Notes, Global Tower Series 2010-1. The transaction is an issuance of notes backed by mortgages representing no less than 80% of the annualized run rate NCF and is guaranteed by the direct parent of the borrower. Those guarantees are secured by a pledge and first priority perfected security interest in 100% of the equity interest of the borrower, which owns or leases 1,351 wireless communication sites, and of its direct parent, respectively.
Fitch rates CSMC Series 2010-RR1
This transaction is a resecuritization of the ownership interest in three commercial mortgage-backed certificates which total $373,960,000. The transaction consists of three non-pooled re-REMIC bond groups each backed by one underlying super-senior A-4 bond.
Rating Actions
Fitch Ratings affirms RBSCF Trust 2009-RR2 Pass-Through Certificates, Series 2009-RR2
Class A-2FX of ML-CFC 2007-5
Fitch Ratings has assigned a 'AAA/LS2' rating to the $25,000,000 class A-2FX of ML-CFC Commercial Mortgage Trust 2007-5. The creation of the A-2FX class is the result of the bifurcation of the existing $60 million class A-2FL certificate. There has been a partial termination of the swap agreement for class A-2FL with $25 million of the certificate balance being re-allocated to the new fixed-rate class A-2FX certificate. Class A-2FL remains floating rate with a reduced certificate balance of $35 million.
Performance Reports
Wachovia Bank Commercial Mortgage Trust, Series 2005-C19
Recent Special Servicing Transfers
The list below summarizes loans transferred to special servicing during the period of
February 5-10. This list includes loans only within the Fitch Ratings' rated portfolio
and with balances greater than $20 million.
Transaction: Morgan Stanley Capital 2007-XLF
Property: 155 Swanson Road
City/State: Boxborough, MA
Property Type: Office
Balance: $85.5 million
MS: Midland Loan Services
SS: CT Investment Management Co.
Reason for Transfer: Maturity Default
Transaction: UBS 2007-FL1
Property: Rexcorp Princeton Office Portfolio
City/State: Princeton, NJ
Property Type: Office
Balance: $48.0 million
MS: Berkadia
SS: Berkadia
Reason for Transfer: Imminent Default
Transaction: BACM 2007-1
Property: Indian Hills Apartments
City/State: Euclid, OH
Property Type: Multifamily
Balance: $46.0 million
MS: Bank of America
SS: CWCapital Asset Management
Reason for Transfer: Monetary Default
Transaction: COMM 2006-C8
Property: Shoppes at Dadeland
City/State: Miami, FL
Property Type: Retail
Balance: $39.0 million
MS: Midland Loan Services
SS: LNR Partners
Reason for Transfer: Monetary Default
Transaction: Morgan Stanley 2007-IQ16
Property: Crown Plaza-Addison
City/State: Addison, TX
Property Type: Hotel
Balance: $37.0 million
MS: Berkadia
SS: Centerline Capital Group
Reason for Transfer: Imminent Default
Transaction: GCCFC 2007-GG9
Property: Aqua Via Apartments
City/State: Oakland, CA
Property Type: Multfamily
Balance: $34.0 million
MS: Wachovia
SS: LNR Partners
Reason for Transfer: Imminent Default
Transaction: Chase 2000-2
Property: Embassy Suites Atlanta-Buckhead
City/State: Atlanta, GA
Property Type: Hotel
Balance: $32.5 million
MS: Berkadia
SS: Berkadia
Reason for Transfer: Imminent Default
Transaction: Chase 2000-2
Property: Embassy Suites San Francisco
City/State: San Francisco, CA
Property Type: Hotel
Balance: $22.3 million
MS: Berkadia
SS: Berkadia
Reason for Transfer: Imminent Default
Transaction: UBS 2007-FL1
Property: St. Anthony Hotel
City/State: San Antonio, TX
Property Type: Hotel
Balance: $22.3 million
MS: Berkadia
SS: Berkadia
Reason for Transfer: Maturity Default
12 February 2010 8:29 AM
HNN Newswire
Fitch Ratings' U.S. CMBS Market Trends highlights and trends
Average Loan Size in Special Servicing Increasing
Fitch Ratings reports the average loan size for loans moving into special servicing has increased 2.4 times from a year ago to $17.2 million. Five of the loans newly transferred in January had balances in excess of $100 million. The larger loan balances have been a factor in the rise in Fitch Ratings' loan delinquency index (LDI).
Within the agency's rated universe of $452.9 billion, there are 621 loans greater than $100 million ($136 billion). Of these loans, 558 or 93% by dollar balance were securitized in 2005 or later vintages when underwriting practices began to deteriorate. Currently, 88 of the 558 are at the special servicer and 87 are considered Fitch loans of concern . Should these loans of concern default, an additional $18 billion would move to special servicing.
Fitch Ratings tracks the loans that move into special servicing on a daily basis for the 473 transactions in its portfolio. In January, 248 loans totaling $4.27 billion moved into special servicing. This brings a total of 2,880 loans, representing 10.4% of Fitch's rated universe by dollar balance in special servicing. Of the loans transferred in January, 55% were due to imminent default and 35% were due to monetary default.
The property type with the largest influx in January was retail at $1.4B or 33% of the January transfers. The largest of the new transfers was the $550 million Palisades Center retail loan in the COMM 2005-FL10 transaction. The loan, which is collateralized by a two million square foot super regional center in West Nyack, NY, transferred for imminent default as it approaches its final maturity without available extensions or a refinancing commitment. Property performance remains stable with the most recent servicer reported occupancy at 100% as of September 2009 and the most recent reported debt service coverage ratio is 2.25 times as of year end 2008. The transfer of the loan highlights the continued limited liquidity available to refinance large loans even when they are performing.
The distribution of property types in special servicing are:
•Hotel: 275 loans totaling $11.0 billion, out of a universe of 2,131 loans, $49.3 billion
•Multifamily: 872 loans totaling $9.8 billion, out of a universe of 9,320 loans, $62.2 billion
•Office: 509 loans totaling $7.5 billion, out of a universe of 6,559 loans, $141.5 billion
•Retail: 842 loans totaling $15.0 billion, out of a universe of 12,837 loans, $127.3 billion
Fitch Ratings continues to maintain a negative outlook for all property types as performance of commercial properties generally lags the economy. Hotel loan defaults, especially luxury brands, which have been particularly hard hit by the recession, will continue to outpace defaults of multifamily, retail, and office properties in the near term. Currently 22% of the hotel loans within The agency's portfolio are in special servicing, followed by 16% of multifamily loans, 12% of retail loans, and only 5% of office loans. Of the hotel loans transferred to special servicing in 2009, 89% were due to imminent default and many later became delinquent.
Contact: Mary MacNeill +1-212 908-0785
View the chart of the largest rated specially serviced loans
New Issuance
GTP Towers Issuer, LLC Global Tower Series 2010-1
Fitch Ratings has issued a presale report on GTP Towers Issuer, LLC Secured Tower Revenue Notes, Global Tower Series 2010-1. The transaction is an issuance of notes backed by mortgages representing no less than 80% of the annualized run rate NCF and is guaranteed by the direct parent of the borrower. Those guarantees are secured by a pledge and first priority perfected security interest in 100% of the equity interest of the borrower, which owns or leases 1,351 wireless communication sites, and of its direct parent, respectively.
Fitch rates CSMC Series 2010-RR1
This transaction is a resecuritization of the ownership interest in three commercial mortgage-backed certificates which total $373,960,000. The transaction consists of three non-pooled re-REMIC bond groups each backed by one underlying super-senior A-4 bond.
Rating Actions
Fitch Ratings affirms RBSCF Trust 2009-RR2 Pass-Through Certificates, Series 2009-RR2
Class A-2FX of ML-CFC 2007-5
Fitch Ratings has assigned a 'AAA/LS2' rating to the $25,000,000 class A-2FX of ML-CFC Commercial Mortgage Trust 2007-5. The creation of the A-2FX class is the result of the bifurcation of the existing $60 million class A-2FL certificate. There has been a partial termination of the swap agreement for class A-2FL with $25 million of the certificate balance being re-allocated to the new fixed-rate class A-2FX certificate. Class A-2FL remains floating rate with a reduced certificate balance of $35 million.
Performance Reports
Wachovia Bank Commercial Mortgage Trust, Series 2005-C19
Recent Special Servicing Transfers
The list below summarizes loans transferred to special servicing during the period of
February 5-10. This list includes loans only within the Fitch Ratings' rated portfolio
and with balances greater than $20 million.
Transaction: Morgan Stanley Capital 2007-XLF
Property: 155 Swanson Road
City/State: Boxborough, MA
Property Type: Office
Balance: $85.5 million
MS: Midland Loan Services
SS: CT Investment Management Co.
Reason for Transfer: Maturity Default
Transaction: UBS 2007-FL1
Property: Rexcorp Princeton Office Portfolio
City/State: Princeton, NJ
Property Type: Office
Balance: $48.0 million
MS: Berkadia
SS: Berkadia
Reason for Transfer: Imminent Default
Transaction: BACM 2007-1
Property: Indian Hills Apartments
City/State: Euclid, OH
Property Type: Multifamily
Balance: $46.0 million
MS: Bank of America
SS: CWCapital Asset Management
Reason for Transfer: Monetary Default
Transaction: COMM 2006-C8
Property: Shoppes at Dadeland
City/State: Miami, FL
Property Type: Retail
Balance: $39.0 million
MS: Midland Loan Services
SS: LNR Partners
Reason for Transfer: Monetary Default
Transaction: Morgan Stanley 2007-IQ16
Property: Crown Plaza-Addison
City/State: Addison, TX
Property Type: Hotel
Balance: $37.0 million
MS: Berkadia
SS: Centerline Capital Group
Reason for Transfer: Imminent Default
Transaction: GCCFC 2007-GG9
Property: Aqua Via Apartments
City/State: Oakland, CA
Property Type: Multfamily
Balance: $34.0 million
MS: Wachovia
SS: LNR Partners
Reason for Transfer: Imminent Default
Transaction: Chase 2000-2
Property: Embassy Suites Atlanta-Buckhead
City/State: Atlanta, GA
Property Type: Hotel
Balance: $32.5 million
MS: Berkadia
SS: Berkadia
Reason for Transfer: Imminent Default
Transaction: Chase 2000-2
Property: Embassy Suites San Francisco
City/State: San Francisco, CA
Property Type: Hotel
Balance: $22.3 million
MS: Berkadia
SS: Berkadia
Reason for Transfer: Imminent Default
Transaction: UBS 2007-FL1
Property: St. Anthony Hotel
City/State: San Antonio, TX
Property Type: Hotel
Balance: $22.3 million
MS: Berkadia
SS: Berkadia
Reason for Transfer: Maturity Default
Friday, February 5, 2010
US CMBS Delinquencies - December 2009
The delinquent status of the Extended Stay America loan was a large contributor to a 129 basis-point increase in overall U.S. CMBS delinquencies last month to 6 percent, according to Fitch Ratings’ weekly U.S. CMBS newsletter.
“While the Extended Stay loan is a significant contributor to the increase in delinquencies, a steady up-tick in all property types will lead to continued increases in the months ahead,” said managing director Susan Merrick. “Even without the classification of the Extended Stay loan as delinquent, the Index would have increased to 5.10 percent instead of 6 percent.”
For the fifth consecutive month, each of the five main property types saw an increase in delinquencies. Delinquency rates for those properties compared to last month are as follows:
• Office: 3.06% (vs. 2.66%)
• Hotel: 16.44% (vs. 9.13%)
• Retail: 4.94% (vs. 4.25%)
• Multifamily: 8.33% (vs. 7.54%)
• Industrial: 3.73% (vs. 3.57%)
“While the Extended Stay loan is a significant contributor to the increase in delinquencies, a steady up-tick in all property types will lead to continued increases in the months ahead,” said managing director Susan Merrick. “Even without the classification of the Extended Stay loan as delinquent, the Index would have increased to 5.10 percent instead of 6 percent.”
For the fifth consecutive month, each of the five main property types saw an increase in delinquencies. Delinquency rates for those properties compared to last month are as follows:
• Office: 3.06% (vs. 2.66%)
• Hotel: 16.44% (vs. 9.13%)
• Retail: 4.94% (vs. 4.25%)
• Multifamily: 8.33% (vs. 7.54%)
• Industrial: 3.73% (vs. 3.57%)
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