The wind down of the Federal Reserve’s quantitative easing program and rising Treasury rates are signaling an increase in interest rates for hotel owners, inciting Jones Lang LaSalle to expand its group of hotel financing experts. This rise in rates has sparked an increase in borrowing on hotel assets, which is expected to continue for the next 36 to 48 months.
Managing director Matt Comfort leads the firm’s national hotel investment banking platform. Comfort has added Kevin Davis to his team as an executive vice president, and will be responsible for raising capital for hotel owners and developers and providing advisory services.
“With the pending rise of Treasury rates, it’s prime time for long-term holders of stabilized hotel assets to secure fixed-rate financing and lock in today’s rate, which remains historically low,” says Comfort. “Short-term, floating-rate financing options will be an attractive vehicle for hotel owners, as the LIBOR basis risk remains relatively low during the next few years. Increased competition for lending is causing credit spreads to tighten, pushing lenders to finance assets outside their wheelhouse.”
Additionally, Bill Grice has been promoted to executive vice president. He will assist clients by arranging financing for the acquisition of new hospitality assets, renovating current holdings, or refinancing existing debt. Mike Huth will step in as senior vice president and Matt Nowaczyk will serve as vice president.
“The team’s full-time focus on hospitality finance, coupled with the unmatched knowledge that our overall platform exhibits, will allow us to further differentiate ourselves as the market-leading investment banking platform,” says Tom Fish, co-leader of Jones Lang LaSalle’s Real Estate Investment Banking Group.
