Hotel CMBS Loans6.5% to 9.0% Non Recourse 10 Year Fixed · $10 million and up

The desk finds a capital source for your hotel CMBS file and presents it only to sources whose tracked credit box fits. The lane covers hotel loans of $10 million or more through 11 tracked conduit programs with caps up to $2.1 billion, alongside 36 tracked hotel programs with caps up to $6 billion. After the file arrives, the desk reads it and matches it against the credit boxes, and the selected sources issue terms. A capital source among capital sources approves this profile. PeerSense arranges the introduction and is paid a referral fee at closing by the client, meaning the lender, borrower, or both depending on the structure.

Hotel CMBS rates are 6.5% to 9.0% non recourse 10 year fixed in May 2026. Premium branded limited service (Marriott, Hilton select service): 6.5% to 7.5%. Full service branded (JW, Hyatt, Westin): 7.0% to 8.0%. Resort and destination hotels: 7.25% to 8.5%. Independent and soft brand: 7.75% to 9.0%. Pricing depends on flag, RevPAR trajectory, location, and franchise agreement remaining term.

Hotel CMBS LTV caps at 70% max and more typically 60% to 65%. Premium branded limited service: 65% to 70%. Full service branded: 60% to 65%. Resort and destination: 55% to 65%. Independent: 55% to 60%. Lower LTV vs. multifamily reflects cash flow volatility, hotels reset revenue nightly while multifamily has 12 month lease locked rent stability.

Yes. All hotel CMBS loans are non recourse with bad boy carve outs (fraud, waste, voluntary bankruptcy). However, PIP reserves, FF&E reserves, and occasionally operating covenant triggers (minimum DSCR, RevPAR floor) are enforced during the loan term. Non recourse is the single biggest structural advantage over bank hotel debt (typically partial recourse).

Flag is a major pricing variable. Premium flags (Marriott, Hilton, IHG) trade tightest because the brand provides demand certainty and operational consistency. Mid scale flags (Hilton Garden, Courtyard, Hampton) trade 25 to 50 bps wider. Soft brands (Autograph Collection, Curio, Tapestry) trade 50 to 100 bps wider. Independent and unflagged hotels trade 75 to 200 bps wider. Franchise agreement with remaining term < 5 years triggers lender concern, PIP risk and reflaging uncertainty.

Yes, hotel CMBS to CMBS refinance is the most common hotel CMBS transaction type right now given the $150B+ hotel CMBS maturity wall through 2027. Required: trailing 12 month NOI supports new DSCR (1.35x+), property is in good physical condition (post PIP or no PIP required), and franchise agreement has sufficient remaining term. If NOI doesn't support refinance, bridge is the intermediate step for 18 to 36 months to stabilize RevPAR. See /bridge-loans/hotel.

Minimum DSCR is 1.35x to 1.50x on trailing 12 month NOI. Premium branded limited service: 1.35x. Full service branded: 1.40x. Resort / destination: 1.50x. Independent: 1.45x to 1.55x. Stressed DSCR at the lender level (applying management fee, reserves, RevPAR haircuts) is typically 15 to 25% below trailing NOI, the biggest DSCR haircut in all of CRE.

Yes, but more limited than multifamily CMBS. Core branded limited service: 2 to 3 years IO. Full service branded: 1 to 2 years IO. Independents: typically full amortization from day one. IO is used for deals where year 1 NOI is modestly below target (soft RevPAR ramp) to improve debt yield in year 1.

60 to 90 days from LOI to close. Hotel CMBS closes slower than multifamily or industrial CMBS because third party diligence is heavier, PIP engineer report, franchise estoppel letter, STAR/STR competitive set report, and hotel specific appraisal with revenue based valuation. Properties with clean PIP status and trailing RevPAR above competitive set close on the fast end.

As of mid 2026, hotel CMBS performance is split by segment. Limited service and extended stay hotels in drive to leisure markets have generally recovered to or above 2019 RevPAR, while full service urban and resort assets still lag. Estimated hotel CMBS delinquency sits in the mid to high single digits and special servicing transfers stay elevated as 2015 to 2017 vintage loans reach hard maturity. Estimates derived from Trepp and S&P Global surveillance data.

Estimated hotel CMBS delinquency runs in the mid to high single digit percent range in 2026, with special servicing transfers higher. Foreclosure and discounted payoff outcomes concentrate in full service, urban, and non branded properties whose trailing 12 month NOI cannot clear the 1.35x refinance DSCR at current rates. The dominant workout is bridge to CMBS: a bridge pays off the maturing loan, funds PIP and lease up over 18 to 36 months, then refinances into CMBS at improved trailing RevPAR. Figures are estimates from Trepp, S&P Global, and KBRA surveillance.