105.40 +0.58 (0.55%)
After hours: 7:24PM EDT
|Bid||105.00 x 800|
|Ask||105.27 x 36200|
|Day's Range||98.10 - 105.04|
|52 Week Range||46.56 - 153.39|
|Beta (5Y Monthly)||1.28|
|PE Ratio (TTM)||27.12|
|Earnings Date||Aug. 03, 2020 - Aug. 07, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Feb. 27, 2020|
|1y Target Est||94.35|
If you think that airfare and hotel rate trends will be uniformly characterized by steep discounting as travel reopens unevenly across the globe, then guess again. Travel businesses have pent-up demand in their favor, to be sure, but how hotels and airlines price their services in coming months will play a crucial role in travel's […]
The leaders of two of the world’s largest hotel companies have a different outlook on how the hotel industry will rebound from coronavirus. The chief executives of major hotel brands like Marriott, Hilton, and Accor attended an NYU webinar Tuesday to discuss the pandemic’s impact on hotels around the world. All agreed coronavirus will likely […]
Marriott (MAR) witnesses increase in occupancy rates across China and the United States.
One of my favorite expressions, which seems particularly appropriate as U.S. cities burn anew, is “a luta continua,” Portuguese for “the struggle continues.” Because 52 years after the 1968 uprisings and riots, which were triggered by the assassination of Martin Luther King Jr. and so much more, one can make the argument that not much […]
As of around 3 p.m. EDT, the Nasdaq Composite (NASDAQINDEX: ^IXIC) had picked up about three-quarters of a percent. The Nasdaq 100 Index of top Nasdaq stocks saw slightly more muted gains of around 0.4%, which was more in line with the broader market's rise. Among Nasdaq 100 stocks, however, two companies stood out.
Shares of the consumer discretionary stock were up 7.3% at 3:15 p.m. EDT and seemed to be holding their gains for the day. Marriott CEO Arne Sorenson said today that the company has reopened all of its hotels in China and is starting to see demand pick up in the U.S. Occupancy in China is still only 40%, but that's up from 7% to 8% in February when the economy was shutting down there.
The rebound of travel in China in the wake of the coronavirus pandemic has given Marriott International (NASDAQ: MAR) the green light to reopen all its Chinese hotels, according to a statement today from CEO Arne Sorenson. Occupancy rates in China have risen from as low as 7% earlier in the year to approximately 40% in late May, tracking the return to normality after strict lockdown measures halted COVID-19 there. Demand for hotel rooms in the United States is also recovering, according to the figures supplied by Sorenson at a travel conference hosted by Goldman Sachs.
Shares of the hotel operator, which owns the Ritz-Carlton and St. Regis luxury brands, rose as much as 8.1% to $95.64 in afternoon trading after Sorenson said the occupancy rate in China was 40% currently, up from 7% to 8% in February, when COVID-19 started spreading. In the United States, Marriott's hotels that remained open crossed the 20% occupancy threshold and continue to see an improvement, Sorenson said.
The chief executive of the world’s largest hotel company doesn’t expect coronavirus to forever upend the hotel industry. Marriott President and CEO Arne Sorenson hasn’t disguised his thoughts on how negative the ongoing pandemic has been for hotels. He has repeatedly claimed the coronavirus impact on the hotel industry is worse than the 9/11 terrorist […]
(Bloomberg Opinion) -- In Whitstable, a British seaside town just over an hour’s drive from London, every day of the last two weeks has been like a busy summer weekend. Britons may be unable or unwilling to take international flights, but with the first easing of lockdown restrictions, they are more than happy to head to the beach to bask in the sun and eat fish and chips from the only restaurants open for now.Optimism that people everywhere will be eager to wander once travel restrictions end drove a rebound in airline and tour-operator stocks this week. But these hopes may be overdone. Lingering health-safety concerns and uncertainty about which borders will open mean many consumers on both sides of the Atlantic will stick close to home this summer.What’s more, they may favor a remote Airbnb rental instead of staying in a hotel, with the increased chances of running into other people in the lobby, elevator or restaurant. Globally, new bookings at Airbnb Inc. and Expedia Group Inc.’s Vrbo more than doubled from 916,000 in the week of April 5 to 2.08 million in the week of May 18, according to AirDNA, a short-term rental data provider.While the home-sharing site Airbnb has been hit hard by the travel trough, it said domestic bookings rose strongly in China, Korea, the Netherlands and Denmark in April, and they’ve increased significantly in Germany since the beginning of May. More telling, Chief Executive Officer Brian Chesky told the Associated Press that 30% of bookings are currently within a 50-mile radius of people’s own homes — basically the next town over — up from 13% before the novel coronavirus outbreak, a trend he attributes to people’s aversion to flying for now.Areas that tourists can drive to, and classic local vacation spots, such as the mountains, lakes and beaches, are proving resilient.Take Germany, a country known for exporting summer tourists. Short-term rentals in the North Sea coastal district of Nordfriesland, which includes the island of Sylt, enjoyed an almost 800% increase in bookings between March 22 and May 17, according to AirDNA. And it’s unlikely they’re coming from abroad — in general just 16% of visitors are from outside Germany. By contrast, Berlin, a popular destination for foreign visitors, has seen just a 71% increase.It’s a similar picture in the U.S, where rentals near beaches in Alabama, Texas, Georgia and the Carolinas are proving popular. By contrast, cities such as New York and San Francisco are recovering more slowly. In this Covid-19 crisis, home-rental sites tend to have an advantage. For example, the majority of Airbnb hosts are in less populated areas, while most hotel chains have a bigger presence in cities. Some of the lodging giants have also ventured into the holiday rental market. Four years ago, French hotel giant Accor SA acquired Onefinestay, an upmarket competitor to Airbnb. One potential drawback with private rentals during the pandemic is that guests have to trust hosts are cleaning and disinfecting well. Hotel groups including Accor, Marriott International Inc., Hilton Worldwide Holdings Inc. and InterContinental Hotels Group Plc have announced stringent hygiene standards.Airbnb has responded with its own guidelines developed with former U.S. Surgeon General Vivek Murthy, including advice on personal protective equipment and disinfectants. Hosts who sign up can leave their properties empty for just 24 hours between guests. Otherwise, they must respect a 72-hour “booking buffer.”For other people, getting away from home may mean taking their lodging with them. Provisional bookings at caravan and campsites in the U.K. look promising. In the U.S., there’s been a bump in demand for motor homes. Indeed, road trips may be one of the first holidays taken on both sides of the Atlantic.While all this pent-up demand is a good sign, it’s unlikely all the money usually spent on overseas travel will be recouped. Staycations aren’t really conducive to flagrant discretionary spending in normal times, but the coronavirus outbreak and lockdowns has brought job losses and economic hardship as well. That will eat into outlay. For a gauge of comparison, in 2017, the year after Britain voted to leave the European Union, the decline in the pound meant many people avoided international travel, but only 60% of what would have been spent abroad was redirected to the U.K., according to analysts at Bernstein.With this crisis, the effect could be even more extreme if shops have to restrict the number of patrons, local tourist attractions can’t open or people remain nervous about going to restaurants or bars even with all of the necessary social distancing measures in place.Indeed, although Whitstable Holiday Homes, an agency for 39 houses, is enjoying its usual high level of bookings for July and August, further out, customers are waiting. A crucial consideration will be whether the town’s vibrant eateries will be open alongside the fish-and-chip shops.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The world’s largest hotel companies expect independent hoteliers to flock to flag affiliations and their accompanying global reach during the coronavirus recovery to rebuild business. Don’t hold your breath, says an organization representing boutique hotels. The Boutique Lifestyle Leaders Association and partner organization StayBoutique launched this week the BoutiqueStrong campaign and council to provide boutique […]
The U.S. hotel supply continues to grow at a record pace, even with the industry facing its worst downturn in recorded history. But the building boom’s days are numbered. Many hotels around the world are temporarily closed due to the coronavirus downturn in travel. But looking at hotel construction sites around the U.S., you wouldn’t […]
Travel stocks, including Expedia (NASDAQ: EXPE), Tripadvisor (NASDAQ: TRIP), Hyatt Hotels (NYSE: H), and Marriott International (NASDAQ: MAR), were climbing today on enthusiasm about a broader economic recovery and new entrants in the race toward a vaccine. At the same time, the S&P 500 was trading 1.7% higher.
Liability lawsuits are almost an inevitable part of operating a hotel, but coronavirus is a new legal frontier for hospitality lawyers. It is a matter of when, not if, a wave of litigation unfurls against property owners from plaintiffs claiming they were exposed to the virus at a commercial property like a hotel, lawyers interviewed […]
Prior to the coronavirus pandemic, leading disruptive influences in travel included alternative accommodations and artificial intelligence, but during the current crisis refunds and cancellations have shattered finances, travel policies, business models, and partner and customer relationships. The fallout has triggered flexible cancellation policies, booking incentives, and some attempts at fence-mending. Consider Airbnb, which saw reservations […]
(Bloomberg Opinion) -- At first glance, the latest memo from JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon reads like nothing short of a kumbaya moment from the billionaire who leads the biggest U.S. bank.Ahead of JPMorgan’s annual shareholder meeting, Dimon highlighted a $250 million global business and philanthropic commitment that will help “vulnerable and underrepresented communities”; a collaboration with Marriott International Inc. and others that will provide up to $10 million of hotel stays for health-care workers addressing Covid-19 in the U.S.; a lifeline to “hundreds of thousands of homeowners” to delay mortgage payments for three months; and almost $1 billion in new loans for small-business clients. The list goes on.The numbers that stuck out to me, however: JPMorgan has helped investment-grade companies raise $664 billion and an additional $104 billion in high yield so far this year. It’s not entirely clear what “helped” means, but the bank’s earnings presentation last month said it had “helped clients raise $380B+ through the investment-grade debt market in 1Q20,” implying that whatever the criteria, it has done an additional $284 billion of it in the second quarter with six weeks to go.April was a record month for the broad high-grade bond market, with some $300 billion of deals pricing, and May has shown little signs of slowing down with about $168 billion in the books. High-yield volume rebounded in April to $37.3 billion, the most in a month this year, and so far an additional $23.8 billion has priced in May. As Federal Reserve Chair Jerome Powell said in his “60 Minutes” interview about the central bank’s corporate credit facilities, “we haven't actually had to lend anyone any money because now the markets are working because the markets know that we’re there.”Functioning bond markets might be enough for Powell, but for Dimon and his counterparts like Bank of America Corp.’s Brian Moynihan, it’s still market share that matters. In a subtle way, Dimon might have been letting his competitive side show by lauding the bank’s underwriting figures so far in 2020.According to Bloomberg’s league tables, JPMorgan finished No. 1 in both investment-grade and high-yield underwriting in 2019. As it stands now, JPMorgan is on track to reclaim its titles in 2020. A back-to-back finish atop the rankings hasn’t happened for the bank since 2013, which capped off a four-year string of first-place finishes after the last recession.The league tables, which use a stricter criteria on which deals qualify for a given bank, show just how slim the margins can be at the top. For instance, Bank of America snatched first place in investment-grade underwriting in 2018, the only time in the past decade that JPMorgan didn’t hold the top spot. The two banks underwrote $141 billion and $139.9 billion, respectively. That same year, JPMorgan edged out Credit Suisse in high yield, $17 billion to $16.1 billion. So far in 2020, JPMorgan has increased its investment-grade market share year-over-year by 3.28 percentage points, more than any other bank. Its closest competitor, Bank of America, has increased its share by 2.21 percentage points. In high yield, Bank of America has picked up the most market share and has done the most deals, though it still trails JPMorgan in overall volume, according to the Bloomberg league tables.All this is to say, fees from debt underwriting will play an important role in the second-quarter earnings results of the biggest U.S. banks. With Treasury yields near record lows, net interest income will inevitably come under pressure. Market volatility is nowhere near the levels seen in March, as measured by the VIX Index, which means trading revenue won’t be the lifesaver it was in the previous quarter. And provisions for credit losses will still eat into profitability. One of the few constants so far in the second quarter has been the flood of new bond deals hitting the market.JPMorgan and other big banks are clearly trying to tone down their competitive side during this pandemic to avoid appearing greedy during a time of fear. As I’ve said before, bankers are positioning themselves to be the good guys in this crisis, given that they’re well capitalized and have the capacity to be there for clients, unlike in 2008.Dimon’s memo, in that sense, effectively summarizes the mood. “Let’s leverage this moment to think creatively about how we can mobilize to address so many issues that inhibit the creation of an inclusive economy and fray our social fabric,” he wrote. “By doing the right thing during times of crisis, we can emerge stronger and more cohesive in its wake.” At the same time, he has an obligation to have JPMorgan emerge stronger from this economic downturn as well. Part of that is keeping a tight grip on its debt-underwriting throne.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- The Times Square Edition, a Manhattan hotel that opened to great fanfare last year, is slated to close permanently in August as the coronavirus grinds tourism to a halt and the hotel’s owner faces off with lenders.A representative for Marriott International Inc., which operates the Edition brand, says it “has provided advance notice to employees, government officials and union officials” that it expects to cease operations of the property on or about Aug. 13.Marriott warned owner Maefield Development in March that a cash shortfall due to the outbreak could put the developer in default on its contract with the lodging giant, new documents in an ongoing foreclosure proceeding show. The hotel is part of a mixed-use property once appraised at $2.4 billion, according to a 2018 report from Moody’s Investors Service.Representatives for Maefield didn’t respond to requests for comment.The company is the latest Midtown hotel investor to run into trouble. Earlier this month, the owner of the Hilton Times Square wrote down the value of the hotel to less than the $77 million mortgage on the property, warning investors that it may surrender the keys to its lender.Times Square’s Empty Rooms Signal Reckoning for NYC HotelsPayments were late on about $1 billion in commercial mortgage-backed securities used to finance New York hotels in April, while lodging executives are predicting that the pandemic, combined with an oversupply of rooms, will make it hard for the city’s market to recover.“We expect to see many hotels and rooms fail to reopen, with perhaps many of them likely converted to affordable housing or homeless facilities,” Jon Bortz, chief executive officer of Pebblebrook Hotel Trust, said on a call with analysts earlier this month.Still, new hotels are supposed to have advantages over competitors in a crowded market, and the Edition had major firepower behind it. The brand is a collaboration between Marriott, the world’s largest lodging company, and industry icon Ian Schrager, who co-founded the infamous nightclub Studio 54 before pioneering the concept of the boutique hotel. Opening night festivities attracted a generation-spanning list of luminaries, including Kendall Jenner and Diana Ross.Maefield ran into challenges at the property before the pandemic brought the curtains down on Broadway and emptied Times Square of tourists. In December, a group of lenders led by Natixis SA sought to foreclose on the project, which includes the 452-room hotel, retail space and digital signage.A representative for Natixis declined to comment.(Updates with value of property from Moody’s in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- As the Federal Reserve pulls out all the stops to bolster credit markets, corporate America is gorging on debt.From Carnival Corp., Marriott International Inc. and Delta Air Lines Inc. to Gap Inc. and Avis Budget Group Inc., many of the companies hardest hit by the coronavirus outbreak have priced billions of dollars of bonds and loans in recent weeks.Never mind that profits have been wiped out, and that their business operations aren’t viable right now or likely anytime soon. As long as they’re propped up by the Fed, investors are willing to lend.Yet as expectations of a V-shaped economic recovery vanish rapidly, more and more industry veterans are starting to express concern about these debt dynamics. Some warn that the Fed is putting credit markets on course for a future wave of defaults that makes the current stretch of corporate bankruptcies look timid by comparison.Others see an outcome even more dire.In this scenario, they say, moribund companies in industries deeply scarred by the pandemic will just keep borrowing. Market watchers such as Deutsche Bank AG chief economist Torsten Slok fear that a new breed of so-called zombie companies -- firms that don’t earn enough to cover interest payments and are kept alive in part by central bank largess -- could have profound and painful consequences for everyone from workers to investors for years to come.“The Fed and the government are interfering in the process of creative destruction,” Slok said in an interview. “The consequence is that we are at risk the longer this persists –- companies being kept alive that would otherwise have gone out of business -- that it will begin to weigh on the overall potential for growth of the economy and on productivity.”It’s not that these risks mean the Fed’s current policy tack is misguided. Given the scope of the economic collapse and the unprecedented spike in unemployment that has accompanied it, most analysts say policy makers had to throw everything they could at the problem. It’s just that such dramatic intervention comes with great risks that will have to be addressed down the road.“The Fed had no other choice than to do what it did,” Slok said.Still, it’s precisely this dramatic intervention that’s emboldening money managers to take greater chances and seek fatter returns.“You can’t say ‘we’ll do whatever it takes’ and not do it,” said Jack McIntyre, who helps oversee about $60 billion at Philadelphia-based Brandywine Global Investment Management. “Otherwise, the Fed will lose credibility.”McIntyre said he’s buying select investment-grade corporate bonds in lieu of Treasuries “because the Fed has backstopped the market -- if spreads widen, the Fed will step in.”That’s just the sort of sentiment that can ultimately lead to the proliferation of zombies, economists say.Fed BackstopThe actual definition of what makes a company a zombie varies depending on who you ask, but most agree that it’s generally meant to encompass firms that can’t cover their debt servicing costs from current profits over a select period.A snapshot of the market reveals no shortage of companies that would fit that description should the economic rebound take time to gain momentum.Earnings for companies, excluding financials, in the S&P 500 are forecast to drop a staggering 42% in the second quarter from the previous year as the full effect of global lockdowns are felt, according to estimates compiled by Bloomberg.At the same time, net corporate debt issuance has ballooned, and could approach as much as $1 trillion this year, according to Bloomberg Intelligence.Delta and Marriott declined to comment, while Avis didn’t respond to requests seeking comment.Carnival referred Bloomberg to a press release highlighting the strength of its balance sheet and continued customer bookings for the second half of the year and 2021.A representative for Gap directed Bloomberg to a statement noting its financing and cash preservation efforts, adding that the company plans to have 800 stores open by the end of May.If the pace of the recovery is quick enough, corporate-bond buyers say plenty of hard-hit companies should be able to turn things around.But the question on the minds of investors and economists alike is: how long will the Fed be willing to support firms via its pledge to buy corporate debt if the recovery is slower to develop than expected?“The government has done more than I could have imagined to allow businesses to access capital, and if the markets shut down again the government will do even more,” said Bill Zox, chief investment officer of fixed income at Diamond Hill Capital Management, which manages around $19.5 billion.Borrowing BingeIt’s an especially salient question when it comes to the sectors hardest hit by the Covid-19 outbreak.Cruise lines have borrowed more than $8 billion via the bond market in recent weeks, selling notes secured by everything from ships to islands. Airlines, for their part, have gotten more than $14 billion in new financing from banks and investors, even as the vast majority of flights remain grounded.“We have entire industries that are going to be protracted long-term if not permanently disrupted because of this,” said Vicki Bryan, a veteran credit analyst who runs Bond Angle LLC. “The cruise industry is ripe for elimination of companies. It should logically renounce the weaker players but that’s not happening because we have dirt-cheap money that we’re willing to throw back into the market from the Fed.”Beyond just lending them money, creditors are also waiving or loosening financial markers on existing debt, allowing companies that have seen revenue dry up stave off potential tumult.Vail Resorts Inc. -- owner of the eponymous winter vacation destination -- was granted a two-year reprieve on key debt covenants last month, paving the way for the company to raise $600 million with a new bond offering. Marriott, one of the world’s largest hotel chains, struck a similar agreement with lenders.A representative for Vail said that the company’s bank covenant waiver provided additional flexibility given the short-term dislocation from Covid-19, and that it remains confident in the long-term outlook for both profit and cash flow.‘Catch-22’Yet amid the waivers, lenders are extracting higher interest rates or other concessions.Norwegian Cruise Line Holdings Ltd., AMC Entertainment Holdings Inc. and Avis all paid double-digit yields to borrow in recent weeks. That could depress their capacity to make capital expenditures and adapt to shifting consumer tastes as the coronavirus changes how people spend money.“Taken together with margin contraction and leverage that was already near record highs, you may end up with a corporate sector that has less capacity to invest in growth,” said Noel Hebert, director of credit research at Bloomberg Intelligence.Norwegian has a “long-standing track record of strong financial performance which includes over a decade of financial growth,” a company spokesperson said in an emailed response to questions. “The cruise industry has been hit the hardest by Covid-19 as our operations have been completely shut down, which certainly impacts us in the short-term but has no bearing on our long-term success.”AMC didn’t respond to requests seeking comment.Read more: Corporate debt loads are growing fast as Fed opens up spigotsSome say as successful as the Fed has been boosting credit-market liquidity, the support is only temporary, and will result in a wave of distress when it steps back.“There will be plenty” of debt defaults and bankruptcies when corporate borrowers start running out of cash in the months ahead, Howard Marks, co-chairman of Oaktree Capital Group, said in a Bloomberg TV interview. “There are large, highly levered companies and investment vehicles that the government and Fed rescue program is not likely to reach and take care of.”Others see central-bank intervention keeping companies alive for much longer, crowding out investment and employment at healthy firms, similar to what occurred in Japan during the nation’s ‘lost decade’ of the 1990s, where the ‘zombie company’ term was first applied.“You are misallocating capital to businesses that are not productive and in some sense taking resources away from companies that have high growth,” Deutsche Bank’s Slok said.The repercussions may only become apparent years from now, according to Marc Zenner, a former co-head of corporate finance advisory at JPMorgan Chase & Co.“It’s hard for me to think that something like that doesn’t have a cost,” Zenner said. “What you’ll see is some of these costs will probably only emerge years later. Are we going to have reduced capacity to act? Is it that other economies will be less burdened and will attract more capital? Is there another crisis that will come because of this misallocation of capital?”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The world’s major hotel brands are upping the ante on cleaning in an effort to win customer confidence and capture whatever market share exists in the travel industry’s initial coronavirus recovery. Be it ultra luxury or roadside economy, hoteliers know they have to evolve operations to a new, socially distanced normal in light of coronavirus. […]
As of 11:45 a.m. EDT, shares of mountain skiing specialist Vail Resorts (NYSE: MTN) are climbing 10.8%, hotelier Marriott International (NASDAQ: MAR) is up 13.8%, and casino operator Eldorado Resorts (NASDAQ: ERI) is doing best of all -- gaining 19.5%. This is a slow start -- but at least a start -- to reopening Eldorado Resorts.
The Nasdaq Composite (NASDAQINDEX: ^IXIC) didn't see quite the same level of gains as broader measures like the S&P 500, but it was still higher by about 2.4% as of noon EDT today. The Nasdaq 100 Index was higher by just under 2%. Good news from the healthcare front in the fight toward developing a coronavirus vaccine helped lift several pharmaceutical and biotech companies within the Nasdaq.
Analysts are beginning to predict the hotel industry’s recovery from the coronavirus downturn in travel, but some caution there are still too many unknown variables awaiting properties when they reopen. Marriott CEO Arne Sorenson Monday said most of the world’s hotel markets had hit their bottom performance levels and were beginning to show signs of […]
The world’s biggest hotel companies are banking on brand conversions to fuel growth out of the coronavirus downturn in travel. But changing flags on a property isn’t always a silver bullet to drive new revenues. Travel demand plummeted in the first quarter while coronavirus spread around the world. But hotel executives still saw opportunities amid […]
(Bloomberg) -- A Starwood Capital Group affiliate is in advanced talks to provide fresh financing to TPG RE Finance Trust Inc., the mortgage real estate investment trust that’s warned it may not have sufficient liquidity to meet obligations and sustain operations.Starwood’s proposal, details of which couldn’t immediately be learned, is currently favored by the TPG-managed REIT ahead of alternatives presented by firms including Oxford Properties Group Inc. and Neuberger Berman’s Almanac Realty Investors LLC, said people with knowledge of the matter. If a financing agreement is reached, it may be announced as soon as this month, said the people, who asked not to be identified because the talks are private.Representatives for Starwood and TPG declined to comment.In TPG RE’s going-concern warning, the Greta Guggenheim-led company said that, as a result of extreme short-term volatility and negative pressure in the financial markets, it was “forced to sell certain of our assets at an inopportune time” to meet margin calls. The REIT also signaled that the shutdown caused by the coronavirus pandemic could, for example, drive at least nine hotel loans into default.As of March 31, TPG RE’s loan investment portfolio was made up of 65 first mortgages and one mezzanine loan with total commitments of $5.8 billion, filings show.TPG RE’s stock has sunk roughly 70% this year to less than $6 a share, leaving the company with a market value of about $460 million. Analysts have reduced their 12-month price targets on the stock, with JPMorgan Chase & Co. recently slicing its projection to $7.50 from $20.50, data compiled by Bloomberg show.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.