What DSCR does a post-PIP hotel need for CMBS?

Minimum 1.25x based on trailing-twelve NOI. Hotels at 1.35x or higher qualify for express underwriting and the tightest available spreads. CMBS underwriters also stress-test at higher rates to ensure debt coverage under adverse scenarios.

Is a hotel CMBS loan assumable?

Yes. CMBS loans are fully assumable with lender approval, which typically involves a 1% assumption fee and new borrower qualification. Assumability adds significant value at resale since the buyer inherits below-market fixed-rate debt.

What is defeasance on a hotel CMBS loan?

Defeasance replaces the hotel collateral with U.S. Treasury securities that match remaining debt service payments. This allows early payoff without a prepayment penalty, though defeasance costs vary with interest rate environment. Budget 2-5% of loan balance.

Can I get CMBS financing on a limited-service hotel?

Yes. Branded limited-service and select-service hotels (Marriott, Hilton, IHG flags) are among the most actively financed hotel types in CMBS. Strong franchise affiliation, consistent RevPAR, and location quality drive underwriting more than service level.

Published: March 31, 2026·Last updated: September 7, 2026·By Ed Freeman, Capital Advisor. PeerSense

What is the best financing for hotel at 65% LTV?

Stabilized hotels at 65% LTV with a completed PIP qualify for non-recourse CMBS fixed-rate financing starting at approximately 6.25% on the strongest stabilized deals (most CMBS loans price 6.75%–9% depending on asset, sponsor strength, and LTV) for 10-year terms. Post-renovation equity reduces effective LTV, and 12 months of stabilized operating history unlocks the lowest conduit spreads available for hospitality assets.

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder

Prime: 6.75% 10-Yr Treasury: 4.78% Est. CMBS Range: 6.25% – 11%+ (typical 6.75% – 9%)as of Sep 7, 2026

Hotel

65% LTV Hotel Refinance After PIP

Stabilized post-PIP hotel at 65% LTV? Qualify for non-recourse CMBS fixed-rate financing from approximately 6.25% on the strongest stabilized deals (typical 6.75%–9%). Express conduit underwriting for experienced hospitality sponsors.

Minimum 30-35% equity required. Experienced hotel operators with equity that supports $10 million and up, 5%+ post-close liquidity, and a completed PIP with 12 months trailing stabilized NOI.

Talk to PeerSense Call (317) 452-6990

KEY TERMS

Deal Parameters at a Glance

LTV Target

65%

Est. Rate Range

6.25% – 11%+ (typical 6.75% – 9%)

Term

5-10 years fixed

Recourse

Non-recourse

DSCR

1.25x minimum

Closing Speed

30-45 days

Min Loan Size

$10 million and up

Loan Products

CMBS

Indicative only, as of September 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.

FIT ASSESSMENT

When Is This the Right Fit?

This financing is ideal when your hotel PIP is complete, occupancy has stabilized at 65%+ for at least 12 months, and trailing NOI supports a 1.25x+ DSCR. If you currently hold bridge debt at 8-15%, refinancing into permanent CMBS (typically 6.75%–9%, with the strongest deals reaching 6.25%) can reduce annual debt service by 20-40%. The 65% LTV sweet spot gives you the tightest spreads and fastest underwriting. If your property needs more seasoning, consider a bridge extension or mezzanine to reach stabilization.

Want the full program overview, current rate sheet, and underwriting matrix? See the CMBS Loans guide →

ADVANTAGES

Key Benefits

Non-recourse with standard bad boy carve-outs, personal assets protected

Lowest fixed rates available for hospitality (starting 6.25%)

Post-PIP equity creation lowers effective LTV below 60% in many cases

Fully assumable debt enhances resale value

25-30 year amortization with interest-only options for strong sponsors

ALTERNATIVES

Strategic Alternatives

Bridge-to-CMBS Hotel Acquisition

If your hotel is still in renovation or pre-stabilization

Learn more

SBA 504 Hotel Owner-Occupied

If you operate the hotel and want up to 85% LTV with SBA

Learn more

CMBS Balloon Maturity Refinance

If your current CMBS loan is approaching balloon maturity

Learn more

Frequently Asked Questions

Most conduits require 12 months of post-renovation operating history showing stabilized RevPAR and occupancy. Some will underwrite with 6 months trailing if the trend is strong and the sponsor has a proven track record with similar assets.

See Related Rates by Program

PeerSense covers the full commercial capital stack. Indicative levels that lenders in our network have been pricing across these programs, as of September 1, 2026.

Originator warehouse

$100M a month

Focus $100 million a month. Will look at $10 million a month. $10 million is not the focus.

See current rates

Invoice Factoring

0.5–3.5% / 30d

B2B invoices from $20 million a month. Advance 80 to 95 percent of face.

See current rates

Bridge Loans

9.00–14.00%

$10 million and up. Cash in about 35 percent. Name the takeout first.

See current rates

Data Center

CRS to 89%

$1 billion to $30 billion plus. Signed or guaranteed hyperscaler lease.

See current rates

Contracted revenue sale

Up to 89%

15 year lease signed or guaranteed by a hyperscaler. Size follows the lease.

See current rates

Hotel Financing

Hotel is search only. Public floor $10 million and up. Cash in about 35 percent.

See current rates

Private Credit

7.80–18.00%

Non-bank flexibility. Public CRE floor $10 million and up.

See current rates

SBA 7(a) & 504

Search path. Not a growth lane on this desk.

See current rates

DSCR Investor

Search path. Public CRE floor $10 million and up.

See current rates

Connect with PeerSense, Direct Capital Advisory

PeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With a curated network of lender relationships and live market rate intelligence, we match your hotel deal with the right capital source, right now.

Scan Your Deal (30 sec)Talk to PeerSense Call (317) 452-6990

Fee at closing only · Complimentary initial consultation

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated September 2026.

Disclaimer: The information on this page is provided for educational purposes only and does not constitute financial, legal, or investment advice. Rates, terms, and availability are subject to change based on market conditions, property characteristics, and borrower qualifications. The rate ranges cited reflect approximate market pricing as of September 2026 and may not reflect current 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 with qualified financial and legal professionals before making any financing decisions.