Hot Type: Caribbean construction costs; Ashford defaults; European debt financing

QUOTE OF THE WEEK
“More broadly, Ashford's actions highlight the challenges that borrowers are facing today, particularly as debt maturities approach. The hand back the keys vs. paydown decision is more difficult for higher-levered, floating-rate loans.” – Michael Bellisario, R.W. Baird, on Ashford Hospitality Trust’s announced plans to likely give back the keys on 19 underperforming hotels  Read story

“Balancing lenders’ need for amortization with the owners’ need for a return on capital will be challenging. Achievable ICR (interest coverage ratio) covenants, until market activity increases and gives added certainty to asset valuations, will be challenging.” – James Salford, Bird & Bird, on the state of debt finance in Europe  Read story

“Obviously, labor costs are always an important part of the cost equation. They’re roughly 40% of construction costs in the Caribbean. That’s an ongoing challenge because of the shortage of workers that continues to impact the global supply chain as well as the lack of local workers available for construction crews.” – Sanjay Amin, BCQS International, on surging construction costs in the Caribbean  Read story

“I think that our market is generally for those individuals who are looking for long-term legacy build. Real estate historically has been a safe bet, especially in this kind of market, where the stock market can be so up and down. So, for those investors who are looking to really capitalize on where they can place their money and still get a return, this is it.” – Diana Lynch on investment opportunities at Alma de Samaná Golf & Residences, Dominican Republic  Read story

“We make editorial decisions based on experience and solid news judgment, and nothing else. We will continue to operate by these tenets because quality content based on interpreting the challenges and opportunities of the day is what matters most to all of us and, most importantly, you.” – Jeff Weinstein, Hotel Investment Today, on the publication’s first six months  Read story