Here are some recent comments I have heard on the state of hotel defaults (and to protect the innocent and my relationships I won’t do attributions).

“Hotel owners are in a mass grave that hasn’t been discovered yet” (from a major hotel owner speaking, I guess, from the grave).

“What I, as an owner, worry most about at night is LIBOR. I own fifteen hotels on floating rate loans and if there is a 200 basis point increase I am finished.” (Another body in the grave? And by the way, does anyone really think that interests will stay low for many more years???)

One very smart lender stated that the mantra for servicers on hotel loan modifications is…

           “Blend and extend, then

            Blend and pray, then

            Blend and pretend, and finally

            Blend and defend.”

“This is a structurally different hotel recession than we have ever had.  The worst since records started in 1937.” (Does anyone reading this blog remember 1937?)