Mid-South business headlines: Hotels at risk for foreclosure request second stimulus due to COVID-19 outbreak

Mid-South business headlines: Hotels at risk for foreclosure request second stimulus due to COVID-19

MEMPHIS, Tenn. (WMC) - We’re taking a look at some of today’s biggest business headlines impacting the Mid-South with Greg Akers, Editor-in-Chief of the Memphis Business Journal.

The hotel industry is pleading for a second stimulus.

Hospitality experts say without federal intervention and relief, the carnage will be widespread including right here in Memphis.

Akers says this is a request for relief from a looming crisis regarding property loans.

“So what happens is hotels take out loans, property owners do, and at some point, those are kind of packaged together and swapped. So there is a big crunch coming of loans that are going to be due as they always are...” said Akers.

Akers says if the hotel properties don’t excel in things like occupancy levels they are at risk for default. And due to the COVID-19 outbreak, hotel occupancy has plummeted.

“The whole industry, in many ways, is at risk for default,” said Akers.

There are $263 million dollars worth of loans in Memphis that are at risk of going into default within a month’s time.

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