Wachovia is marketing a new commercial mortgage-backed securities deal that has a 30% concentration of hotel loans, the largest such allocation for a conduit in more than five years. Nearly $600 million of the $2 billion Wachovia Bank Commercial Mortgage Trust's collateral is backed by hotel properties. A Lehman Brothers-UBS partnership completed a deal in January that had a 21.4% exposure, which was the previous high. The average so far for 2006 has been around 13%, analysts said.

Of the 13 hotel loans in the deal, the largest is a $335 million piece of a $570 million debt package on the Grande Lakes Orlando Resort, a massive upscale property in Orlando, Fla., which was purchased by CNL Hotels & Resorts for $753 million, presale reports said. Officials at Wachovia did not return calls. Of the $32.8 billion of conduit volume that has been priced or is expected to be priced in the coming few days, $4.1 billion, or 13%, has been backed by hotels.

This is also Wachovia's second deal this month. The firm completed a $4.2 billion deal about a month ago and traders noted that the pace signals a ramp up for the group.