Hotel Bridge LoansTakeout named first · 9.75% to 13% · Public floor $10 million and up
Talk to PeerSense. The capital source sets the terms. Built for PIP renovations, flag conversions, RevPAR ramp plays, distressed CMBS maturity rescues, and foreclosure scenarios where speed and credit flex matter more than the last 50 bps of rate. Full doc 60 to 70% LTV institutional path also available when the sponsor clears the credit box. CMBS exit pre mapped at the 60 to 65% LTV gold standard lane.
Marriott · Hilton · IHG · Choice · Wyndham · independents and soft brands · limited service and full service · franchisee and corporate operators · distressed and stabilized.
Last updated: ·By Ed Freeman, Capital Advisor. PeerSense
Eligible collateral is commercial & investment real estate only. The following do not qualify under any PeerSense program, regardless of equity or credit: owner occupied primary residences, second homes, and single family homes you live in (or plan to vacate at closing); and properties in active foreclosure. Pre foreclosure is considered case by case. If it's a home you live in, a residential mortgage broker is the right starting point.
What are typical hotel bridge loan rates in 2026?
Talk to PeerSense. The capital source sets the terms.75% to 13% interest only in May 2026, property + exit drive pricing, not the borrower. Conservative LTV cushion enables no FICO floor underwriting, distressed OK scenarios, and 14 to 30 day close. Alternative full doc 60 to 70% LTV institutional bridge programs price 50 to 150 bps tighter (9.0% to 11.0%) but require 680+ FICO, full PFS, $25M+ AUM, and 21 to 45 day close. Origination 1.0% to 2.0%. Standard exit: CMBS at the 60 to 65% LTV gold standard lane (6.5% to 9.0%) once RevPAR clears stabilization.
Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated May 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 |
|---|---|---|---|---|---|---|
| Asset Based Branded Ltd Svc Acquisition | 50% as-is | Property driven | 6 to 24 mo | Interest Only | 9.75% to 11.0% | Sponsor carve outs only |
| Asset Based PIP Renovation (Distressed OK) | 50% as is + PIP reserve | Exit driven | 12 to 24 mo | Interest Only | 10.25% to 12.0% | Sponsor carve outs only |
| Asset Based CMBS Maturity Rescue / DPO | 50% of par or as is | Exit driven | 12 to 24 mo | Interest Only | 11.0% to 13.0% | Sponsor carve outs only |
| Asset Based Foreclosure Rescue | 50% as-is | Exit driven | 6 to 18 mo | Interest Only | 11.5% to 13.0% | Sponsor carve outs only |
| Full Doc Branded Ltd Svc Acq (Alt Path) | 65 to 70% | 1.20x stabilized | 18 to 36 mo | Interest Only | 9.0% to 11.0% | Partial / burn off |
| Full Doc PIP Brand Mandated (Alt Path) | 70 to 75% LTC | 1.15x stabilized | 24 to 36 mo | Interest Only | 10.0% to 12.0% | Completion guarantee |
| Full Doc Flag Conversion (Alt Path) | 60 to 65% LTC | 1.15x stabilized | 24 to 36 mo | Interest Only | 10.5% to 12.0% | Completion guarantee |
| Full Doc Full Service Acq (Alt Path) | 60 to 65% | 1.20x stabilized | 24 to 36 mo | Interest Only | 10.5% to 12.5% | Partial / burn off |
| Full Doc Independent / Soft Brand (Alt Path) | 55 to 60% | 1.20x stabilized | 24 to 36 mo | Interest Only | 11.5% to 13.0% | Partial / full |
Asset Based Branded Ltd Svc Acquisition9.75% to 11.0% · 50% as-is LTV
- Max LTV
- 50% as-is
- Min DSCR
- Property driven
- Term
- 6 to 24 mo
- Amortization
- Interest Only
- Rate Range
- 9.75% to 11.0%
- Recourse
- Sponsor carve outs only
Asset Based PIP Renovation (Distressed OK)10.25% to 12.0% · 50% as is + PIP reserve LTV
- Max LTV
- 50% as is + PIP reserve
- Min DSCR
- Exit driven
- Term
- 12 to 24 mo
- Amortization
- Interest Only
- Rate Range
- 10.25% to 12.0%
- Recourse
- Sponsor carve outs only
Asset Based CMBS Maturity Rescue / DPO11.0% to 13.0% · 50% of par or as is LTV
- Max LTV
- 50% of par or as is
- Min DSCR
- Exit driven
- Term
- 12 to 24 mo
- Amortization
- Interest Only
- Rate Range
- 11.0% to 13.0%
- Recourse
- Sponsor carve outs only
Asset Based Foreclosure Rescue11.5% to 13.0% · 50% as-is LTV
- Max LTV
- 50% as-is
- Min DSCR
- Exit driven
- Term
- 6 to 18 mo
- Amortization
- Interest Only
- Rate Range
- 11.5% to 13.0%
- Recourse
- Sponsor carve outs only
Full Doc Branded Ltd Svc Acq (Alt Path)9.0% to 11.0% · 65 to 70% LTV
- Max LTV
- 65 to 70%
- Min DSCR
- 1.20x stabilized
- Term
- 18 to 36 mo
- Amortization
- Interest Only
- Rate Range
- 9.0% to 11.0%
- Recourse
- Partial / burn off
Full Doc PIP Brand Mandated (Alt Path)10.0% to 12.0% · 70 to 75% LTC LTV
- Max LTV
- 70 to 75% LTC
- Min DSCR
- 1.15x stabilized
- Term
- 24 to 36 mo
- Amortization
- Interest Only
- Rate Range
- 10.0% to 12.0%
- Recourse
- Completion guarantee
Full Doc Flag Conversion (Alt Path)10.5% to 12.0% · 60 to 65% LTC LTV
- Max LTV
- 60 to 65% LTC
- Min DSCR
- 1.15x stabilized
- Term
- 24 to 36 mo
- Amortization
- Interest Only
- Rate Range
- 10.5% to 12.0%
- Recourse
- Completion guarantee
Full Doc Full Service Acq (Alt Path)10.5% to 12.5% · 60 to 65% LTV
- Max LTV
- 60 to 65%
- Min DSCR
- 1.20x stabilized
- Term
- 24 to 36 mo
- Amortization
- Interest Only
- Rate Range
- 10.5% to 12.5%
- Recourse
- Partial / burn off
Full Doc Independent / Soft Brand (Alt Path)11.5% to 13.0% · 55 to 60% LTV
- Max LTV
- 55 to 60%
- Min DSCR
- 1.20x stabilized
- Term
- 24 to 36 mo
- Amortization
- Interest Only
- Rate Range
- 11.5% to 13.0%
- Recourse
- Partial / full
Indicative only, as of May 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Indicative ranges as of May 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.
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Two Hotel Bridge Paths, Same PIP and CMBS Exit Discipline
Hotels are operating businesses wrapped in real estate, revenue resets nightly, STAR reports move PIP valuations, RevPAR is the binding metric. That operational volatility is exactly why the 50% LTV asset based path matters in 2026: it's the only execution that closes through a flag mandated PIP deadline, a special servicer DPO window, or a foreclosure auction date. The full doc 60 to 70% LTV institutional path is the tighter pricing alternative for sponsors with clean credit and time to run the diligence cycle. Both paths exit into CMBS at the 60 to 65% LTV gold standard lane once RevPAR stabilizes.
Path A | Asset Based 50% LTV (Property First)
The capital source's lane. 50% max LTV against as is value enables property only underwriting: no tax returns, no personal income tests, no FICO floor on qualifying scenarios. Built for distressed hotel scenarios, foreclosure rescue, broken escrow rescue, flag mandated PIP deadlines, special servicer DPO windows, partner buyouts under litigation pressure, post bankruptcy operators. 14 to 30 day close from clean docs. 9.75% to 13% interest only, 6 to 24 month term. The 50% LTV cushion absorbs execution variance, even a 30% RevPAR shortfall keeps the lender at ~70% LTV.
Path B | Full Doc 60 to 70% LTV (Institutional)
Higher LTV institutional hotel bridge programs do exist, and we'll structure them when the sponsor clears the credit box. Requires full personal financial disclosure, 680+ FICO, 3+ comparable hotel exits, $25M+ AUM, franchise comfort letter coordination, STR report, PIP engineer review, and 21 to 45 day close. Pays off in 50 to 150 bps tighter pricing than the asset based path. The right path when there's time to run institutional diligence and the rate delta compounds over a 24+ month bridge.
PIP Reserves Underwritten Separately on Both Paths
Flag mandated PIP renovations ($5K to $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. Same structure on the asset based and full doc paths, the difference is close speed and credit box.
RevPAR Ramp Determines the CMBS Take Out
CMBS hotel conduits require 12 month trailing RevPAR + NOI at stabilization to underwrite the permanent loan. Bridge covenants embed RevPAR milestones: Hit $105 RevPAR by month 18 to qualify for the extension, then hit $115 by month 24 to refinance into CMBS at the 60 to 65% LTV gold standard lane. The asset based path uses the same milestones, the 50% LTV starting point means there's plenty of room to refinance at higher LTV without re equitizing.
$150B+ Hotel CMBS Maturity Wall = DPO Opportunity
$150B+ of hotel CMBS originated 2015 to 2017 is maturing through 2027 with balloon payments sponsors can't refinance at current rates. Special servicers are offering discounted payoffs (DPO) at 60 to 85% of par. The capital source's 50% LTV asset based bridge is the right execution for the DPO scenario, closes in 14 to 21 days when the servicer deadline is short, funds the DPO + deferred maintenance + RevPAR ramp window, then refinances into new CMBS at stabilization. This is the highest ROI hotel bridge play in the 2026 market.
Hotel Bridge Deal Types We Structure
Flag Mandated PIP Renovation (Existing Owner, Deadline Short)
Marriott, Hilton, IHG, or Choice has issued a PIP letter requiring $5K to $100K+ per key in renovations within 12 to 24 months and the deadline is short. The capital source's 50% LTV asset based bridge closes in 14 to 30 days, refinances existing senior debt + funds the PIP reserve, executes the PIP over 18 to 24 months, ramps RevPAR, then refinances into CMBS at the 60 to 65% LTV gold standard lane.
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. Asset based 50% LTV bridge funds the conversion capex + franchise initiation fees, covers revenue disruption during the brand transition, and gives 24 to 36 months for RevPAR to ramp. Full doc 60 to 65% LTC alternative path is available for institutional sponsors.
Discounted CMBS Payoff | Special Servicer Deadline
Your hotel's 2015 to 2017 vintage CMBS is maturing and the special servicer has offered a discounted payoff (DPO) at 70 to 85% of par with a short window to fund. The capital source's 50% LTV asset based bridge closes inside the servicer deadline, funds the DPO, pulls equity out of the par delta, funds deferred maintenance, and gives 18 to 24 months to refinance at the 60 to 65% LTV gold standard CMBS lane.
Foreclosure Rescue / Broken Deal Rescue (Distressed)
Foreclosure auction is scheduled | or the prior lender pulled mid escrow. The capital source's 50% LTV asset based bridge closes in 14 to 21 days against as is value. No tax returns, no FICO floor on qualifying scenarios, prior BK/foreclosure history is workable. Property + exit do the underwriting. Once stabilized, refinance into CMBS at the gold standard lane.
RevPAR Ramp | Post Renovation Stabilization
You've completed renovations or a soft launch; RevPAR is climbing but not yet at stabilized levels for CMBS. Asset based 50% LTV bridge gives 12 to 24 months for RevPAR to stabilize. Full doc 60 to 65% LTV is the alternative path for sponsors with the diligence cycle. Exit is CMBS at the gold standard lane at $100+ RevPAR stabilized benchmark.
Underperforming Hotel Acquisition + Reposition
You're acquiring a limited service or full service hotel where RevPAR is 20 to 30% below market. Asset based 50% LTV bridge closes the acquisition + capex within 14 to 30 days; full doc 60 to 65% LTV alternative path runs 21 to 45 days. Operational turnaround (pricing, channel mix, revenue management) + capex ($5K to $25K per key) plays out over 24 to 36 months.
Hotel Bridge Loans: Frequently Asked Questions
What are typical hotel bridge loan rates in 2026?+
The capital source's asset based 50% LTV hotel bridge prices 9.75% to 13% interest only, property + exit drive pricing, not the borrower. The conservative LTV cushion lets capital sources look past tax returns, FICO, and personal income. Full doc 60% to 70% LTV institutional bridge programs price 50 to 150 bps tighter (typically 9.0% to 11%) but require 680+ FICO, full sponsor financials, $25M+ AUM, and 21 to 45 day close. Origination 1.0% to 2.0%, PIP reserves funded at close on both paths.
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 to $25K per key (limited service) to $50K to $100K+ per key (full service) are funded as a draw funded reserve inside the bridge loan on both the 50% LTV asset based path and the 60 to 70% LTV full doc path. The asset based path closes 2 to 3 weeks faster, critical when the PIP letter deadline is short.
How long does hotel bridge take to close?+
The capital source's 50% LTV asset based hotel bridge closes in 14 to 30 days because property only underwriting eliminates the personal financial disclosure cycle. Full doc 60 to 70% LTV institutional bridge typically takes 21 to 45 days because of franchise comfort letter coordination, STR report, PIP engineer estimate, and committee approval. Distressed CMBS maturity rescue deals close fastest on the asset based path.
What's the standard hotel bridge exit?+
CMBS hotel conduits are the standard exit at stabilization, 6.5% to 9.0% 10 year fixed, 25 to 30 yr amortization, non recourse. Talk to PeerSense. The capital source sets the terms. Institutional fixed rate lender hotel debt is the tighter alternative for premium branded limited service assets. SBA 504 fits owner operated hotels under $5M acquisition. The exit is pre mapped at bridge close.
How much LTV can I get on a hotel bridge?+
The capital source's lane is asset based hotel bridge at 50% maximum LTV against as is value. The 50% cushion enables property only underwriting, no tax returns, no personal income tests, no FICO floor on qualifying scenarios. Higher LTV full doc programs (60 to 70% LTV branded limited service; 55 to 65% full service) exist as the alternative path but require full personal financial disclosure, 680+ FICO, $25M+ AUM, and 45 to 60 day close. LTC stretches to 75% on PIP heavy full doc deals.
Is hotel bridge non recourse?+
On the 50% LTV asset based path, sponsor carve outs only, no personal guarantee on loan principal. The conservative LTV cushion absorbs execution variance. On the full doc 60 to 70% LTV institutional path, expect partial recourse during PIP/renovation with burn off at stabilization milestones. Full non recourse on full doc is available on $15M+ loans for sponsors with $25M+ AUM track record.
Can I use a bridge to rescue a maturing CMBS hotel loan?+
Yes, given the $150B+ hotel CMBS maturity wall through 2027. The capital source's 50% LTV asset based bridge is purpose built for discounted payoff (DPO) scenarios: special servicer accepts 60 to 85% of par, bridge funds the DPO + deferred maintenance + 18 to 24 month RevPAR ramp window, then refinances into new CMBS at the 60 to 65% LTV gold standard lane. The asset based path is critical when the special servicer deadline is short.
Do bridge lenders accept franchisee (non corporate) hotel operators?+
Yes, franchisee operators (Hampton Inn, Holiday Inn Express, Comfort Inn, Best Western) are the bread and butter of hotel bridge. On the 50% LTV asset based path, franchisee status is not a credit box concern. Full doc 60 to 70% LTV alternative path is available for franchisees who clear the institutional credit box (680+ FICO, prior comparable exit, $25M+ AUM).
Will a hotel bridge lender consider a distressed hotel?+
Yes, distressed hotel is exactly where the 50% LTV asset based bridge solves the problem. Special situation scenarios Talk to PeerSense. The capital source sets the terms. The protective 50% LTV cushion against as is value is what makes these scenarios fundable.
Deals We Structure
Originators, factoring, CMBS, and bridge. Sizes and structures only. No counterparties named. PeerSense sources capital through a curated network of commercial lenders and capital sources.
Focus is 100 million a month. The desk will look at 10 million a month.
Tape first. 10 million is not the focus.
$20 million a month B2B invoices
Advance on the account debtor. Annual receivables is not facility size.
$10 million and up flagged hotel, CMBS refi
Cash in about 35 percent. Named takeout.
$10 million and up value add multifamily bridge
Named takeout first. Close follows the book.
Hyperscaler lease. Owner keeps the facility.
Up to 89 percent of contracted lease value. Do not name the source.
Revolving line against eligible originator receivables
Advance rates are set facility by facility by asset class. Often paired with a flow takeout.
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Talk to PeerSense
Property address, purchase price (or payoff for refi), current NOI or pro forma stabilized NOI, requested loan amount, and exit strategy. The desk will reach out.
Hotel Bridge Loan: The desk will reach out. No obligation.
Ready to place your Hotel bridge when the takeout is named?
Send us the property address, purchase price (or payoff), stabilized NOI, and exit strategy. We'll return a rate indication and lender shortlist. Public floor is $10 million and up. Cash in about 35 percent.
Fee at closing only · Complimentary initial consultation
Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated May 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 May 2026 private credit and debt fund pricing and may not reflect current market conditions at the time of reading. PeerSense sources capital through a curated network of commercial lenders and capital sources. 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.