Hotel Bridge Loans: Close in 21 – 45 days · 9% – 13% Fixed, Interest-Only
PeerSense structures hotel bridge financing from $5M to $75M for PIP renovations, flag conversions, RevPAR ramp plays, and distressed CMBS maturity rescues. Interest-only, draw-funded capex reserve, and the CMBS or life-company exit is pre-mapped so you refinance out cleanly at stabilization.
Marriott · Hilton · IHG · Choice · Wyndham · independents and soft brands · limited service and full service · franchisee and corporate operators.
Last updated: ·By Ed Freeman, Capital Advisor — PeerSense
What are typical hotel bridge loan rates in 2026?
Hotel bridge loans price 9%–13% interest-only in April 2026, indexed to Term SOFR + 500–850 bps. Limited-service branded hotels with experienced operators price 9%–10.5%; full-service, independents, and repositioning deals price 10.5%–13%. Max LTV 55%–70%, terms 18–36 months with extensions. Origination 1.0%–2.0%. Standard exits: CMBS hotel conduit (6.5%–9.0%) or life company (6.25%–8.0%) at RevPAR stabilization.
Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated April 2026.
Hotel Bridge Loan Underwriting Matrix — Terms by Deal Type
Bridge lenders underwrite hotel deals very differently based on the transition being bridged — acquisition vs. refinance vs. lease-up vs. value-add vs. cash-out. Pick your deal type below for typical LTV, DSCR, term, and rate.
| Property Type | Max LTV | Min DSCR | Term | Amortization | Rate Range | Recourse |
|---|---|---|---|---|---|---|
| Branded Ltd-Svc Acquisition (Marriott/Hilton) | 65–70% | 1.20x stabilized | 18–36 mo | Interest-Only | 9.0% – 10.5% | Partial / burn-off |
| PIP Renovation (Brand-Mandated) | 70–75% LTC | 1.15x stabilized | 24–36 mo | Interest-Only | 9.5% – 11.0% | Completion guarantee |
| Flag Conversion (Rebrand) | 60–65% LTC | 1.15x stabilized | 24–36 mo | Interest-Only | 10.0% – 11.5% | Completion guarantee |
| Full-Service Branded Acquisition | 60–65% | 1.20x stabilized | 24–36 mo | Interest-Only | 9.5% – 11.5% | Partial / burn-off |
| Independent / Soft-Brand Repositioning | 55–60% | 1.20x stabilized | 24–36 mo | Interest-Only | 10.5% – 12.5% | Partial / full |
| CMBS Maturity Rescue (Discounted Payoff) | 60–65% of par | 1.15x stabilized | 18–36 mo | Interest-Only | 10.0% – 12.0% | Partial |
| RevPAR Ramp / Lease-Up | 60–65% LTC | 1.15x stabilized | 24–36 mo | Interest-Only | 10.0% – 12.0% | Partial / burn-off |
| Resort / Destination Hotel | 55–60% | 1.25x stabilized | 24–36 mo | Interest-Only | 10.5% – 13.0% | Partial / full |
Branded Ltd-Svc Acquisition (Marriott/Hilton)9.0% – 10.5% · 65–70% LTV
- Max LTV
- 65–70%
- Min DSCR
- 1.20x stabilized
- Term
- 18–36 mo
- Amortization
- Interest-Only
- Rate Range
- 9.0% – 10.5%
- Recourse
- Partial / burn-off
PIP Renovation (Brand-Mandated)9.5% – 11.0% · 70–75% LTC LTV
- Max LTV
- 70–75% LTC
- Min DSCR
- 1.15x stabilized
- Term
- 24–36 mo
- Amortization
- Interest-Only
- Rate Range
- 9.5% – 11.0%
- Recourse
- Completion guarantee
Flag Conversion (Rebrand)10.0% – 11.5% · 60–65% LTC LTV
- Max LTV
- 60–65% LTC
- Min DSCR
- 1.15x stabilized
- Term
- 24–36 mo
- Amortization
- Interest-Only
- Rate Range
- 10.0% – 11.5%
- Recourse
- Completion guarantee
Full-Service Branded Acquisition9.5% – 11.5% · 60–65% LTV
- Max LTV
- 60–65%
- Min DSCR
- 1.20x stabilized
- Term
- 24–36 mo
- Amortization
- Interest-Only
- Rate Range
- 9.5% – 11.5%
- Recourse
- Partial / burn-off
Independent / Soft-Brand Repositioning10.5% – 12.5% · 55–60% LTV
- Max LTV
- 55–60%
- Min DSCR
- 1.20x stabilized
- Term
- 24–36 mo
- Amortization
- Interest-Only
- Rate Range
- 10.5% – 12.5%
- Recourse
- Partial / full
CMBS Maturity Rescue (Discounted Payoff)10.0% – 12.0% · 60–65% of par LTV
- Max LTV
- 60–65% of par
- Min DSCR
- 1.15x stabilized
- Term
- 18–36 mo
- Amortization
- Interest-Only
- Rate Range
- 10.0% – 12.0%
- Recourse
- Partial
RevPAR Ramp / Lease-Up10.0% – 12.0% · 60–65% LTC LTV
- Max LTV
- 60–65% LTC
- Min DSCR
- 1.15x stabilized
- Term
- 24–36 mo
- Amortization
- Interest-Only
- Rate Range
- 10.0% – 12.0%
- Recourse
- Partial / burn-off
Resort / Destination Hotel10.5% – 13.0% · 55–60% LTV
- Max LTV
- 55–60%
- Min DSCR
- 1.25x stabilized
- Term
- 24–36 mo
- Amortization
- Interest-Only
- Rate Range
- 10.5% – 13.0%
- Recourse
- Partial / full
Indicative ranges as of April 2026. Individual deal pricing depends on LTV, DSCR, property type, tenant credit, sponsor track record, and market spreads at the time of rate lock. Contact PeerSense for a deal-specific indication.
Why Hotel Bridge Is the Highest-Spread Bridge Category in 2026
Hotels are operating businesses wrapped in real estate — revenue resets nightly, STAR reports move PIP valuations, and RevPAR is the single most-watched metric in the asset class. That operational volatility prices hotel bridge 100–300 bps wider than multifamily or industrial, but opens bridge structures (PIP reserves, RevPAR-triggered burn-offs, franchise comfort letters) that no other asset class uses. Bridge is also carrying the $150B+ hotel CMBS maturity wall through 2027 as sponsors pay off 2015–2017 vintage loans and ramp to post-COVID stabilization.
PIP Capex Is Underwritten Separately
Flag-mandated PIP renovations ($5K–$100K+ per key) are funded as a draw-funded capex reserve, not counted against LTV on acquisition. That allows sponsors to finance the acquisition + PIP in one bridge without depleting sponsor equity. The PIP reserve releases against contractor draws approved by the lender's construction consultant.
RevPAR Ramp Determines Your Take-Out
CMBS hotel conduits require 12-month trailing RevPAR + NOI at stabilization to underwrite the permanent loan. Bridge lenders build RevPAR milestones into covenants — hit $105 RevPAR by month 18 to unlock the 12-month extension, hit $115 by month 24 to refinance into CMBS. These milestones replace traditional DSCR tests during transition.
Franchise Comfort Letter Is Mandatory
Bridge lenders require a franchise comfort letter from the flag (Marriott, Hilton, IHG, Choice) confirming the franchise agreement will survive a foreclosure and the brand will approve the foreclosure purchaser. Getting this letter is a 21-day process. PeerSense coordinates the comfort letter + PIP approval with the flag's franchise team in parallel with term sheet negotiation.
CMBS Maturity Wall = Discounted Payoff Opportunity
$150B+ of hotel CMBS originated 2015–2017 is maturing through 2027 with balloon payments sponsors can't refinance at current rates. Special servicers are offering discounted payoffs (DPO) at 60–85% of par. Bridge funds the DPO + captures the equity lift from paying off the note below par. This is the highest-ROI hotel bridge play in the 2026 market.
Hotel Bridge Deal Types We Structure
Flag-Mandated PIP Renovation (Existing Owner)
Marriott, Hilton, IHG, or Choice has issued a PIP letter requiring $5K–$100K+ per key in renovations within 12–24 months. Bridge refinances the existing senior debt + funds the PIP reserve. You execute the PIP over 18–24 months, ramp RevPAR, then refinance into CMBS or life company permanent debt at stabilization.
Flag Conversion (Rebrand from X to Y)
You're converting a soft-brand or independent hotel into a Marriott, Hilton, or IHG flag — or upgrading from limited to full service. Bridge funds the conversion capex + franchise initiation fees, covers revenue disruption during the brand transition, and gives 24–36 months for RevPAR to ramp under the new flag.
Discounted CMBS Payoff (Maturity Wall Play)
Your hotel's 2015–2017 vintage CMBS is maturing and the special servicer has offered a discounted payoff (DPO) at 70–85% of par. Bridge funds the DPO, pulls equity out of the delta, funds deferred maintenance, and gives 18–36 months to refinance at current-market terms.
RevPAR Ramp — Post-Renovation Stabilization
You've completed renovations or a soft launch; RevPAR is climbing but not yet at stabilized levels for CMBS. Bridge gives 12–24 months for RevPAR to stabilize with milestone-based covenants. Exit is CMBS or life company at $100+ RevPAR stabilized benchmark.
Underperforming Hotel Acquisition + Reposition
You're acquiring a limited-service or full-service hotel where RevPAR is 20–30% below market. The thesis is operational turnaround (pricing, channel mix, revenue management) + capex ($5K–$25K per key). Bridge closes the acquisition + capex within 30 days, repositioning plays out over 24–36 months.
Hotel Bridge Loans — Frequently Asked Questions
What are typical hotel bridge loan rates in 2026?+
Hotel bridge loans price 9%–13% interest-only in April 2026, indexed to 1-month Term SOFR + 500–850 bps. Limited-service branded hotels (Marriott, Hilton, IHG) with experienced operators price on the low end (9%–10.5%); full-service, independents, and repositioning deals price wider (10.5%–13%). Origination 1.0%–2.0%, PIP reserves funded at close.
Can a hotel bridge loan fund the PIP (Property Improvement Plan)?+
Yes — hotel bridge is the primary capital source for PIP renovations required by the flag (Marriott, Hilton, IHG, Choice). PIP budgets of $5K–$25K per key (limited service) to $50K–$100K+ per key (full service) are funded as draw-funded reserves inside the bridge loan. Execution timelines of 18–36 months align with RevPAR stabilization requirements for the CMBS take-out.
How long does hotel bridge take to close?+
21–45 days from full submission to funding. Hotel bridge closes slower than multifamily bridge because third-party reports required — PIP engineer estimate, Smith Travel Research (STR) report, franchise comfort letter, and flag PIP approval — take 14–21 days. Distressed CMBS maturity rescue deals sometimes close in 14 days by running diligence in parallel with term sheet negotiation.
What's the standard hotel bridge exit?+
CMBS hotel conduits are the standard exit at stabilization — 6.5%–9.0% 10-year fixed, 25–30 yr amortization, non-recourse. Life company hotel debt is a tighter alternative for premium branded limited-service assets (6.25%–8.0%). SBA 504 is an option for owner-operated hotels under $10M acquisition. PeerSense pre-maps the exit at bridge close to avoid refinance risk 24 months later.
How much LTV can I get on a hotel bridge?+
Hotel bridge LTV ranges 55%–70% on purchase and 55%–65% on cash-out refinance. Branded limited-service with experienced operator: 65%–70%. Full-service branded: 60%–65%. Independents and repositioning plays: 55%–60%. Loan-to-cost (LTC) stretches to 75% on PIP-heavy deals with the PIP budget rolled in.
Is hotel bridge non-recourse?+
Hotel bridge is typically partial-recourse or has completion/PIP guarantees during renovation that burn off at stabilization milestones (RevPAR trigger, DSCR test, occupancy threshold). Full non-recourse is available on $15M+ loans for institutional sponsors with track record. Independents and franchisee deals typically carry recourse through stabilization.
Can I use a bridge to rescue a maturing CMBS hotel loan?+
Yes — and this is one of the most common hotel bridge use cases in 2026, given the $150B+ hotel CMBS maturity wall through 2027. Bridge pays off the maturing CMBS (sometimes at a discount if the special servicer agrees to a discounted payoff), funds capex or PIP deferred maintenance, and gives 18–36 months to stabilize for CMBS refinance. Save 200–400 bps vs. extension fees.
Do bridge lenders accept franchisee (non-corporate) hotel operators?+
Yes, but with tighter terms. Franchisee-operated hotels (Hampton Inn, Holiday Inn Express, Comfort Inn) are financed by bridge lenders familiar with limited-service economics — typically 60–65% LTV vs. 70% for institutional operators, and 50–100 bps wider pricing. PeerSense matches the deal to lenders with franchisee-specialized credit boxes (Avana Capital, Stonehill, Access Point).
Deals We Fund
Representative deal profiles showing our typical financing structures and terms.
$12M Hilton-Flag Hotel — Charlotte, NC
6.75% fixed | 65% LTV | 52-day close
$8M Value-Add Multifamily — Tampa, FL
SOFR +395 | 75% LTC | 14-day close
$6.5M Mixed-Use Development — Austin, TX
80% LTC | Interest-only | 18-mo term
$2.8M QSR Franchise — 3 Units — Indianapolis, IN
Prime +2.75% | 25-yr term | 10% down
$3.2M/mo Manufacturing AR — Cleveland, OH
1.5% factor fee | 90% advance | 48-hr funding
$1.8M 6-Unit Rental Portfolio — Phoenix, AZ
7.25% | 75% LTV | No income docs | 1.25x DSCR
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Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated April 2026.
Disclaimer: Hotel bridge loan rates, terms, and availability are subject to change based on property condition, sponsor qualifications, exit strategy, market conditions, and lender-specific credit policies. Rate ranges quoted reflect approximate April 2026 private credit and debt fund pricing and may not reflect current market conditions at the time of reading. PeerSense is a capital advisory firm, not a lender. We do not originate, fund, or service loans. All financing is provided by third-party lenders subject to their own underwriting criteria and approval processes. Borrowers should consult qualified financial and legal professionals before making any financing decisions.