Authors: Ismael Yrigoy*, Uppsala University
Topics: Economic Geography, Europe
Keywords: non-performing loans, hotel asset, land rent, derivative rent, Spain.
Session Type: Paper
Start / End Time: 3:20 PM / 5:00 PM
Room: Studio 8, Marriott, 2nd Floor
Presentation File: No File Uploaded
This paper explores the role of hotel assets in the transformation of non-performing mortgage loans into performing loans. The paper unveils the different strategies that have allowed such a transformation of the performance of loans. Using rent theory as a theoretical and analytical framework, the article aims to analyze how as the crisis has proceeded, there have been shifts both in how rents are extracted from hotel assets, who is extracting rents from hotels, and how hotel assets are devalued and revalued as this transmutation of the performance of loans takes place. The main findings of the paper are the following. First, there has been a temporary shift from derivative rents to land rents. Second, there has been shift in the typologies of landowners/rentiers from national to global actors. Third, the devaluation of hotel assets may occur even if hotel profits do not diminish.