Hotel delinquencies are now the largest proportion of delinquent loans and represent 5.83 percent of Fitch-rated hotels that are more than 60 days delinquent. Nine of the top 20 Fitch-rated specially serviced loans by dollar balance are collateralized by hotels or have a hotel component. The largest newly delinquent hotel was a US$587.7-million note corresponding to the US$4.1-billion Extended Stay America portfolio loan.

While all properties types continue to see performance declines, Fitch expects retail and hotel properties to see the immediate effects. “Hotel properties continue to be the most susceptible to current market stresses,” said senior director Adam Fox.

Read Fitch Ratings' “What’s in Special Servicing?”