Turbulent global financial markets, oil price volatility, and a slowdown in job growth last month are fueling concerns about the strength of the U.S. economy, leaving many hoteliers concerned about what the next cycle will bring. Hotel owners will face tighter financing constraints during 2016 as lenders adapt to more challenging debt capital market conditions, according to Fitch Ratings. Lenders can no longer rely on rising hotel fundamentals to offset poor credit decisions, so sponsor quality will distinguish hotel debt capital access for the balance of this upcycle. New regulatory requirements will continue to temper hotel development growth at the margin, but Fitch expects alternative capital sources to step in and fill the void. To read more, click here.
