HotelCorpGov

Blackstone Continues Slide on BREIT Redemption Move wsj.com/livecoverage/s…

The resulting volatility sent #leveragedloan prices diving anew, with trading market bids matching the stark, deep discounts seen on some high-profile deals that managed their way through the deal-origination process 3/6

Demand for loans dropped, along with supply. Retail investors, in particular, fled the asset class, redeeming some $15B of cash during the quarter amid steep rate hikes and a darkening economic outlook #leveragedloan #highyield 2/6

Friendly reminder that Blackstone purchased the Cosmopolitan casino & hotel on the Las Vegas Strip in 2014 for about $1.8 billion & spent another $500M on upgrades before selling it in 2021 for ~$5.65 billion.

A grim 2Q US #leveragedloan market, in 6 Charts: 1) Worries over inflation, war in Ukraine has many investors fleeing risk, driving loan trading prices to lowest levels in nearly 2 years …

“If things do get messy over the next six to 12 months and borrowers run into big problems, oftentimes that’s where you can find the best opportunities,” said Hyler.

“For Brookfield, which built a roughly 10 per cent stake in British Land early in the pandemic with a view to a potential takeover approach, a repricing could open up the prospect of snapping up office assets or whole businesses.”

Property set to cool as investors face ‘new paradigm’, Brookfield warns via @FT on.ft.com/3P5SNeD

A total of roughly $97 billion of CMBS conduit loans mature within the next 36 months @TreppWire #CMBS

Brookfield hotel REIT sues insurers for denying pandemic claims therealdeal.com/national/2022/…

The SEC has fewer employees than it did when President Barack Obama was in office, Chair Gary Gensler said. Staff that handle enforcement and corporate filing reviews were hit particularly hard. blawgo.com/6ObwY7o

Wow - apparently even investors aren’t entitled to government anymore

Hotel profits are back - but who is paying the price? - Via ⁦@WSJ⁩ I wsj.com/articles/hotel…

My earlier piece on muscle lite companies generated several requests for a deeper dive (see lnkd.in/eEv2M4JV). On Forbes, I just posted a deep dive on Host Inc, a lodging REIT, that owns many of Marriott's hotels, reports a…lnkd.in/eFUzreHa lnkd.in/egv4HMdT

Rising rates have raised eyebrows among European regulaters monitoring the #leveragedloan asset class buff.ly/3MTIbyH @WSJ @kowsmann

A record 88% of $1.375T US #leveragedloan asset class is covenant-lite, per LCD (these loans are less restrictive for debt issuers). Since the financial crisis cov-lite loans, in cases of bankruptcy, have recovered some 9 percentage points less than all loans, says S&P

“In addition, 205,000 or 28% are managed by Marriott but not employed by them. Marriott collects the payroll costs of this 28% as a ‘cost reimbursement’ from hotel owners”

A Marriott disclosure “suggests that around 420,000 workers (745,000-120,000-205,000) or 60% of the ecosystem’s workforce are completely off-balance sheet on affiliates’ books. Of the 745,000, 120,000 or roughly 16% are on Marriott’s payroll.”

Asset-Lite Companies Rely On Labor-Based Arbitrage. Here’s The Investor And ESG Case For Disclosing Their Labor Practices forbes.com/sites/shivaram…