Roosevelt Hotel, which is located in New York, closed down last month. It is one of the latest hotels to shut down due to the Covid 19 pandemic. There are many hotels and malls that are closing down in major cities. There are 43 hotels in New York that are more than behind on their loans. Stores and malls in Chicago are facing a similar problem. There are over 30 stores in the area that are behind on their loans. Two of the biggest cities in America also have some of the biggest borrowers.
Hotel and mall owners have a combined total of $35 billion in defaulted loans. The reason that people have been struggling to pay off the debt is because they have not been getting much business. Covid 19 has caused travel and shopping to slow down considerably compared to this time last year. It is estimated that 14 percent of retail loans and 20 percent of hotel loans are in default. The crisis peaked in June, and there are fewer delinquencies now. However, loan defaults are still astronomically high.Read More »