JQH Chapter 11

KBRA Monitoring John Q. Hammons Hotels & Resorts Bankruptcy

KBRA has identified five loans across ten CMBS transactions with an aggregate balance of $690 million that are impacted by the filing. Of the ten securitizations, four are rated by KBRA.

JQH

Kroll Bond Rating Agency (KBRA) is monitoring the John Q. Hammons Hotels & Resorts (JQH) bankruptcy following the company’s announcement that it, along with its affiliates, filed for Chapter 11 bankruptcy protection on June 26, 2016.

KBRA has identified five loans across ten CMBS transactions with an aggregate balance of $690 million that are impacted by the filing. Of the ten securitizations, four are rated by KBRA. At this time, KBRA is not placing any ratings from the securitizations on Watch, but will continue to follow the filing and the performance of the related loans. The four transactions are exposed to two loans, one of which is a pari passu split loan that was contributed to three of the four KBRA rated deals, as well as a non-KBRA rated securitization. The KBRA rated transactions were all securitized last year, and include GSMS 2015-GC34, GSMS 2015-GS1, CGCMT 2015-GC35 and WFCM 2015-C26. The exposures to JQH in these transactions range from 3.0% to 8.5% of the related pool balances.

John Q. Hammons Hotels & Resorts was formed by John Q. Hammons in 1969 and currently oversees a portfolio of hotels under the Carlson, Hilton, InterContinental, Marriott, Starwood and Wyndham Brands.

For more detailed information please see KBRA’s CMBS Research Report titled KBRA Monitors John Q. Hammons Hotels & Resorts Bankruptcy.



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