Tighter lending standards deal blow to U.S. hotel developers

(Xinhua) 13:31, June 09, 2023

LONDON, June 8 (Xinhua) -- Hotel developers in the United States have found it harder to get funding as regional banks have tightened their lending standards on the heels of the bank crisis, Reuters has reported.

The financial stress on regional banks, which are the largest lenders to hotels and other commercial real estate markets, "has forced developers to postpone projects or find other creative ways to raise capital," the news agency said on Monday.

"The hotel industry's predicament highlights the impact on the broader U.S. economy of the regional banking crisis, which resulted in the failure of three mid-sized U.S. lenders and prompted a flight in deposits to larger banks," it added.

Silicon Valley Bank, Signature Bank, and First Republic Bank in the United States collapsed earlier this year, stirring fresh anxieties about the security of the country's banking system.

(Web editor: Zhang Kaiwei, Liang Jun)


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