Before his death, former Marriott CEO Arne Sorenson wondered at the beginning of the pandemic if job cuts would hinder the hotel industry’s ability to recover. But now that the end of the pandemic is within sight in the U.S., it looks like Marriott is taking steps to make job cuts permanent. Is this actually […]
In a remarkable new story, the New York Times reports what Bailout Bandits has been saying for a while: hotel CMBS debt holders are looking for an expensive, controversial federal bailout. The article explains how wealthy Trump donors like Tom Barrack (Colony Capital), Monty Bennett (Ashford Hospitality Trust), and Doug Manchester cannot make payments on […]
https://www.bailoutbandits.org/wp-content/uploads/33756965825_bde49a7e4f_c.jpg506800jsussmanhttps://www.bailoutbandits.org/wp-content/uploads/bailoutbandits.pngjsussman2020-09-16 10:49:582020-09-16 10:49:58NY Times: Hotel owners with risky debt and Trump ties seek bailout
On Monday, the New York Times reported on investors who had shorted commercial real estate loans – that is, they had bet big against holders of commercial real estate debt, primarily in the retail sector. How big has the payoff been? One major investor made $1.3 billion on this wager since October. The successful short […]
https://www.bailoutbandits.org/wp-content/uploads/17301073405_f693d06017_c.jpg505800jsussmanhttps://www.bailoutbandits.org/wp-content/uploads/bailoutbandits.pngjsussman2020-08-26 11:17:552020-08-26 11:18:24If CMBS short investors made a windfall from the pandemic, should CMBS holders get a bailout?
Back in June, Congressman Van Taylor (R-TX) promoted a letter in support of a bailout for commercial real estate, in particular the hotel commercial mortgage-backed securities (CMBS) market. Along with 104 Representative co-signers, Taylor argued that significant federal support was necessary to prevent a wave of foreclosures and “permanent job loss in multiple industries and […]
https://www.bailoutbandits.org/wp-content/uploads/6326833102_dff66af0ae_c.jpg545800jsussmanhttps://www.bailoutbandits.org/wp-content/uploads/bailoutbandits.pngjsussman2020-08-11 08:00:522020-08-11 09:03:26Is HOPE dead? After debunking by reporters, CMBS bailout bill attracts few cosponsors and industry criticism
In the 1990s Ethan Penner was the primary driver in the creation of the Commercial Mortgage-Backed Securities market while at Nomura Securities. In doing so he created a market which issued $96.7B worth of securities last year alone. But now that COVID-19 has introduced uncertainty for real estate owners and a CMBS bailout is being […]
https://www.bailoutbandits.org/wp-content/uploads/49665900512_e1b31f747c_k.jpg13652048jsussmanhttps://www.bailoutbandits.org/wp-content/uploads/bailoutbandits.pngjsussman2020-08-10 09:49:242020-08-10 09:49:24Pioneer of CMBS slams potential government bailout: CMBS “a forum for mostly the greedy and risk-loving, or the clueless, none of whom deserve a bailout”
In the midst of the largest federal bailout in US history, the hospitality industry has stepped up to demand a slew of subsidies, one of the latest of which is a tax credit for cleaning equipment and expenses ostensibly to keep guests and employees safe from COVID-19. However, their rationale for the credit is not […]
https://www.bailoutbandits.org/wp-content/uploads/safe-stay.png643655jsussmanhttps://www.bailoutbandits.org/wp-content/uploads/bailoutbandits.pngjsussman2020-07-31 09:54:362020-07-31 09:54:36Keeping it clean? Hotel industry demanding tax breaks for cleaning equipment while promoting a job-killing plan to reduce cleaning staff
A blockbuster story from the Washington Post details how hospitality industry employers who received millions in Paycheck Protection Program (PPP) funds have not passed the money on to workers in the form of wages and benefits. The article shows how Omni Hotels, the Fairmont Grand Del Mar in San Diego, and Earl Enterprises, the Orlando-based […]
https://www.bailoutbandits.org/wp-content/uploads/mnuchin-testifying.png10751914jsussmanhttps://www.bailoutbandits.org/wp-content/uploads/bailoutbandits.pngjsussman2020-07-28 09:11:342020-07-28 09:11:34Washington Post details how hospitality industry has failed to support workers with PPP funds
Chip Rogers, President and CEO of the American Hotel & Lodging Association, the country’s biggest hotel lobby, recently spent what he called “one of the most interesting sixty minute time periods of my life” meeting with President Trump and several other hotel industry executives. But in recounting that meeting, Rogers attributed to Trump what sounds […]
https://www.bailoutbandits.org/wp-content/uploads/CR-Trump.png10331785jsussmanhttps://www.bailoutbandits.org/wp-content/uploads/bailoutbandits.pngjsussman2020-07-27 08:30:412020-07-24 17:33:52Trump and hotel lobby singing in harmony: a hotel bailout is for the little guys, we promise!
If you listened to the American Hotel and Lodging Association (AHLA), the nation’s hotel lobbying giant, you might get the impression that U.S. hotels were primarily threatened by unsustainable debt loads. The AHLA has been pushing Congress for months to bail out hotel owners with commercial mortgage-backed security (CMBS) debt, and they are getting closer […]
https://www.bailoutbandits.org/wp-content/uploads/4825534547_71ae46e363_c.jpg533799jsussmanhttps://www.bailoutbandits.org/wp-content/uploads/bailoutbandits.pngjsussman2020-07-23 09:29:332020-07-23 09:29:33The hotel lobby goes to bat for big hotel owners saddled with CMBS debt
Close readers of this blog (yes, we have a few!) might have noticed a theme: what hospitality industry leaders say doesn’t always match what they do. A case in point is the Paycheck Protection Program, the controversial SBA program enacted as part of the CARES Act, whose ostensible purpose is to encourage small businesses reeling […]
https://www.bailoutbandits.org/wp-content/uploads/49066695803_34e7f7214b_k.jpg20482048jsussmanhttps://www.bailoutbandits.org/wp-content/uploads/bailoutbandits.pngjsussman2020-07-14 09:53:082020-07-14 09:53:08AHLA’s Chip Rogers: Saying the quiet part out loud
Marriott moves portend future job cuts – a pandemic legacy?
Before his death, former Marriott CEO Arne Sorenson wondered at the beginning of the pandemic if job cuts would hinder the hotel industry’s ability to recover. But now that the end of the pandemic is within sight in the U.S., it looks like Marriott is taking steps to make job cuts permanent. Is this actually […]
NY Times: Hotel owners with risky debt and Trump ties seek bailout
In a remarkable new story, the New York Times reports what Bailout Bandits has been saying for a while: hotel CMBS debt holders are looking for an expensive, controversial federal bailout. The article explains how wealthy Trump donors like Tom Barrack (Colony Capital), Monty Bennett (Ashford Hospitality Trust), and Doug Manchester cannot make payments on […]
If CMBS short investors made a windfall from the pandemic, should CMBS holders get a bailout?
On Monday, the New York Times reported on investors who had shorted commercial real estate loans – that is, they had bet big against holders of commercial real estate debt, primarily in the retail sector. How big has the payoff been? One major investor made $1.3 billion on this wager since October. The successful short […]
Is HOPE dead? After debunking by reporters, CMBS bailout bill attracts few cosponsors and industry criticism
Back in June, Congressman Van Taylor (R-TX) promoted a letter in support of a bailout for commercial real estate, in particular the hotel commercial mortgage-backed securities (CMBS) market. Along with 104 Representative co-signers, Taylor argued that significant federal support was necessary to prevent a wave of foreclosures and “permanent job loss in multiple industries and […]
Pioneer of CMBS slams potential government bailout: CMBS “a forum for mostly the greedy and risk-loving, or the clueless, none of whom deserve a bailout”
In the 1990s Ethan Penner was the primary driver in the creation of the Commercial Mortgage-Backed Securities market while at Nomura Securities. In doing so he created a market which issued $96.7B worth of securities last year alone. But now that COVID-19 has introduced uncertainty for real estate owners and a CMBS bailout is being […]
Keeping it clean? Hotel industry demanding tax breaks for cleaning equipment while promoting a job-killing plan to reduce cleaning staff
In the midst of the largest federal bailout in US history, the hospitality industry has stepped up to demand a slew of subsidies, one of the latest of which is a tax credit for cleaning equipment and expenses ostensibly to keep guests and employees safe from COVID-19. However, their rationale for the credit is not […]
Washington Post details how hospitality industry has failed to support workers with PPP funds
A blockbuster story from the Washington Post details how hospitality industry employers who received millions in Paycheck Protection Program (PPP) funds have not passed the money on to workers in the form of wages and benefits. The article shows how Omni Hotels, the Fairmont Grand Del Mar in San Diego, and Earl Enterprises, the Orlando-based […]
Trump and hotel lobby singing in harmony: a hotel bailout is for the little guys, we promise!
Chip Rogers, President and CEO of the American Hotel & Lodging Association, the country’s biggest hotel lobby, recently spent what he called “one of the most interesting sixty minute time periods of my life” meeting with President Trump and several other hotel industry executives. But in recounting that meeting, Rogers attributed to Trump what sounds […]
The hotel lobby goes to bat for big hotel owners saddled with CMBS debt
If you listened to the American Hotel and Lodging Association (AHLA), the nation’s hotel lobbying giant, you might get the impression that U.S. hotels were primarily threatened by unsustainable debt loads. The AHLA has been pushing Congress for months to bail out hotel owners with commercial mortgage-backed security (CMBS) debt, and they are getting closer […]
AHLA’s Chip Rogers: Saying the quiet part out loud
Close readers of this blog (yes, we have a few!) might have noticed a theme: what hospitality industry leaders say doesn’t always match what they do. A case in point is the Paycheck Protection Program, the controversial SBA program enacted as part of the CARES Act, whose ostensible purpose is to encourage small businesses reeling […]