COLUMBUS, OH Commercial Bancorp LLC, a commercial financing consulting firm, reported that financing requests rose above the $3 billion dollar mark for the 30-day period ending May 15th 2001.
President Jerry Cummings Jr. noted he feels the economy has not slowed down; instead, it is a direct result of certain lenders tightening their lending criteria.
In addition, Cummings stated that the hedge fund markets in Europe are exploding and Commercial Bancorp expects the growth pattern in U.S.-based hedge funds to follow suit. Our current market calls for short-term (2-3 years) floaters in the $10 to $60 million dollar range, he said.
He also added that occupancy rates have not fallen that much recently but that, hotel financing lenders cant run fast enough to get out of town.
According to Cummings, Commercial Bancorp is getting about 20 to 30 hotel financing requests per month. We are talking branded, upscale hotels that are having difficulty gaining financing. This is yet another area the hedge funds can help in relieving the congestion, he said. (5/31/01)