Type of Submission

Refereed Article


Hotel real estate is subject to cyclicality of the broader commercial real estate market. The recent economic downturn resulted in converting several performing hotel loans into non-performing loans. However, a challenge to one hotel investor may present an opportunity to another. The study provides a comprehensive analysis of the historic context, current opportunities and investment strategies in the non performing hotel market. The study reveals that similar to the last major downturn in the real estate cycle, a confluence of regulatory, economic and political events brought the market once again to this juncture in 2008. The players, processes, motivations and investment strategies and transactions are discussed in detail. As such the paper provides a clearer perspective of current trends in non-performing hotel loan investments.