1 in 5 hotel mortgage loans is delinquent, In the words of Tom Bodett, "We will leave the light on for you"

20.8% of hotel mortgage backed securities is delinquent while 14.18% of multi-family mortgage backed securities are delinquent and REITS continue their lofty climb. Welcome to the New Order of the U.S. Equity Market. We have gone well beyond insanity.

NEW YORK--(BUSINESS WIRE)--While the pace of defaults remains elevated, a record number of loan resolutions in August again tempered the effect of $3.1 billion of new delinquencies, according to the latest U.S. CMBS delinquency index results from Fitch Ratings. The full results are in the agency's weekly U.S. CMBS newsletter.

Recent defaults on five loans greater than $100 million contributed to a 23-basis point (bp) net increase in the U.S. CMBS delinquency rate to 8.48%. Meanwhile, $2.1 billion of loans were resolved or liquidated last month.

'Though special servicers are working out loans at an increased rate, the volume of new delinquencies has not yet subsided,' said Senior Director Adam Fox. 'Highly levered loans originated at the market's peak continue to default as borrowers seek modifications or hand back the keys to underperforming assets.'

In August, three Fitch-rated loans in excess of $100 million became newly delinquent due to performance issues, including:

--$825.4 million Innkeepers Portfolio;
--$140 million Hyatt Regency - Bethesda; and
--$129.5 million Lynnewood Gardens.

Current delinquency rates by property type are as follows:
--Hotel: 20.80% (from 18.64%);
--Multifamily: 14.18% (from 13.87%);
--Retail: 6.11% (from 6.35%);
--Industrial: 5.55% (from 5.20%);
--Office: 5.06% (from 5.08%).

Additional information is available in Fitch's weekly e-newsletter, 'U.S. CMBS Market Trends'. The link below enables market participants to sign up to receive future issues of the E-newsletter