US hotel developers run out of cash as construction lending dries up
Financial stress on regional banks has forced developers to postpone projects or find other creative ways to raise capital
Tighter lending standards from regional banks are making it harder for U.S. hotel developers to secure funding, slowing construction of new hotels at a time Americans' appetite for travel is ripe.
Key takeaways
- The hotel industry's predicament highlights the impact on the broader U.S. economy of the regional banking crisis;
- Fifty-nine of the 98 total U.S. hotel projects that have been paused this year were put on hold since March, when the banking crisis started;
- Hilton and Marriott have also alluded to the issue - warning of a reduction in hotel developments as credit becomes more expensive and less available.
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