Despite hotel REIT bankruptcy, distress remains low for CRE

Hospitality Investors Trust’s Chapter 11 filing last week was a rare exception to the lack of commercial real estate distress but is still well below the pace of bankruptcies seen last year, according to Bloomberg data. Going forward bankruptcies won’t likely be due to major economic upheaval, says Tim Hoffmann, partner at law firm King & Spalding, but rather specific events such as “if interest rates start to rise a little bit, you’ll have companies that can’t refinance.”