BHR - Cerberus Highgate miss payments on $415M loan on 30 hotels
2023-07-24 16:56:13 ET
- Two more hotel owners are having trouble keeping up with debt payments on loans backing hotels, according to a media report.
- Cerberus Capital Management and Highgate have missed two months of payments on a $415M loan for 30 Courtyard by Marriott hotels, Bloomberg reported Monday, citing a servicer report. The two firms have requested an extension of the floating-rate loan, which matured in July, it said.
- The late payments come after Ashford Hospitality Trust ( AHT ) said about a week ago it's likely to turn over 19 hotels to lenders rather than pay to extend three pool loans. And in June, Park Hotels & Resorts ( PK ) stopped payments toward a $725M CMBS loan that's secured by the Hilton San Francisco Union Square and Parc 55 San Francisco hotels.
- In Cerburus and Highgate's case, higher insurance payments after Hurricane Ian and Tropical Storm Nicole, which hit the U.S. last year, contributed to the the late payments, Bloomberg reported .
- Meanwhile, other hotel owners have been able to extend their mortgages. In June, Braemar ( BHR ) extended its $435M mortgage on four hotels.
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Cerberus, Highgate miss payments on $415M loan on 30 hotels