For hotel owners with mortgages owned by Wall Street investors, times are especially tough. In a recent article published by The Wall Street Journal, AAHOA Treasurer Vinay Patel and AAHOA Lifetime Member Danny Gaekwad shared their personal experiences with CMBS loans. According to the article, only 20% of hotel owners with loans that have been packaged and sold to investors have been able to adjust payments in some form during the pandemic, vs. 91% of hotel owners who borrowed from banks.
AAHOA has been working with members of Congress and the Trump administration to seek help for hotel owners with CMBS loans. Recently, Treasury Secretary Steven Mnuchin also acknowledged the issue and suggested he might work with lawmakers on a fix. “We live in fear every single day,” Danny Gaekwad said.