US hotel developers run out of cash as construction lending dries up

Financial stress on regional banks has forced developers to postpone projects or find other creative ways to raise capital

Jun 7, 2023

Tighter lending standards from regional banks are making it harder for U.S. hotel developers to secure funding, slowing construction of new hotels at a time Americans' appetite for travel is ripe.

Key takeaways

  • The hotel industry's predicament highlights the impact on the broader U.S. economy of the regional banking crisis;
  • Fifty-nine of the 98 total U.S. hotel projects that have been paused this year were put on hold since March, when the banking crisis started;
  • Hilton and Marriott have also alluded to the issue - warning of a reduction in hotel developments as credit becomes more expensive and less available.

Get the full story at Reuters

Related must-reads


Get our Daily Brief in your inbox

Consumers are changing the face of hospitality - from online shopping to personalized guest journeys and digitalized guest experiences ...
we've got you covered.

By submitting this form, you agree to receive email communication from and its partners.