Moody's Investors Service said delinquencies on loans in U.S. commercial mortgage-backed securities increased again in August as a big hotel loan added to that sector's woes.
Last month's increase to 8.10% from 7.89% in July comes as the pace of the ongoing rise in commercial property loan delinquencies has moderated of late. Commercial real estate has been pummeled for more than a year as occupancy rates and rents decline, putting pressure on property owners.
In August, hotels again had the highest delinquency rate, at 15.47%. The $825 million Innkeepers portfolio loan, backed by hotel properties throughout the U.S., represented more than 75% of the newly delinquent hotel loans the past month. Innkeepers USA Trust (KPA), a real-estate investment trust that owns more than 70 midmarket hotels, filed for bankruptcy in July as it labored under more than $1 billion in debt.
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