Banks reduced hotel loan portfolios in Q1 2023

Yahoo Finance's Rachelle Akuffo breaks down banks reducing hotel loan portfolios in Q1 of 2023, causing difficulties for hotel developers.

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RACHELLE AKUFFO: All right, now time for our talk of the day and the look at slowing hotel construction tied to lending from regional banks-- have made it more difficult for hotel developers to secure funding for new projects. Regional lenders, fearful of overexposure in the wake of SBB's collapse, slammed their hotel loan portfolios in the first quarter of 2023, and that's according to S&P Global Market Intelligence.

Now 14 of 24 banks with more than $125 million in outstanding loans to the industry reported decreases. Since March, 59 of the 98 total US hotel projects under construction this year have been put on pause, definitely keeping an eye on that.