Your hotel is stabilized. Your PIP is complete. Your RevPAR is strong. Now lock in the lowest permanent rate available — with non-recourse terms that protect your personal assets.
PeerSense specializes in well-capitalized hotel refinances. Minimum 30–35% equity required.
At 65% LTV, stabilized hotels qualify for CMBS non-recourse fixed-rate financing starting at approximately 6.25% for 10-year terms. This is the lowest-cost permanent debt available for hotel assets. Post-PIP properties with experienced sponsors are fast-tracked through express conduit underwriting.
Many hotel operators use bridge loans to acquire and renovate properties. The bridge provides 12–36 months of runway to complete a Property Improvement Plan (PIP), stabilize occupancy, and build a trailing operating history.
After PIP completion, the property’s value increases — which lowers the effective LTV. With stabilized RevPAR and 12 months of post-renovation operating history, the hotel qualifies for permanent CMBS financing at materially lower rates than the bridge.
PeerSense structures bridge loans with the conduit takeout in mind from day one. The bridge terms, hold period, and reserve structure are all designed to ensure a seamless transition to permanent non-recourse CMBS debt.
| Sources | Amount | Uses | Amount |
|---|---|---|---|
| New CMBS Debt (65% LTV) | $6,500,000 | Payoff Bridge Debt | $5,500,000 |
| Borrower Equity | $3,500,000 | Capital Reserve | $750,000 |
| Closing Costs | $150,000 | ||
| Working Capital | $100,000 | ||
| Total | $10,000,000 | Total | $10,000,000 |
| Feature | Hotel CMBS | Bank / Conventional | SBA 504 |
|---|---|---|---|
| Rate Type | Fixed (10yr) | Variable or 5yr fixed | Fixed (25yr) |
| Rate Range | 6.25–9% | 7–10% | ~6.5–7.5% |
| Recourse | Non-recourse | Full recourse | Full recourse |
| Max LTV | 75% | 65–70% | 90% (owner-occupied) |
| Best For | Stabilized, long hold | Short hold, flexibility | Owner-operated hotels |
| Assumable | Yes | No | No |
| Prepayment | Defeasance | Flexible | Standard |
Hotel CMBS loans are monitored by a master servicer throughout the loan term. If certain thresholds are breached, the loan is transferred to a special servicer — a fundamentally different and adversarial relationship. Understanding these triggers helps hotel owners stay proactive.
Missing two consecutive debt service payments triggers an automatic transfer to the special servicer. Once in special servicing, fees and legal costs begin accruing immediately.
If trailing-twelve NOI drops below the DSCR threshold (typically 1.10x–1.15x for ongoing monitoring), the master servicer may place the loan on a watchlist or escalate to special servicing.
Regular, transparent reporting to the master servicer on occupancy trends, RevPAR performance, and capital expenditures prevents “perceived” distress. Servicers escalate when they lose visibility into the property’s performance.
Maintaining adequate FF&E and capital reserves demonstrates the ability to weather vacancy periods and fund necessary improvements. Depleted reserves signal distress to servicers.
PeerSense pre-underwrites every hotel deal before presenting it to our conduit sources. With 500+ institutional capital relationships and live market rate intelligence, we know which conduits are actively lending on hospitality — right now.
No upfront retainer · Fee at closing only · Complimentary initial consultation
Written by Ed Freeman, Capital Advisory — PeerSense. Updated March 2026.
Disclaimer: The information on this page is provided for educational purposes only and does not constitute financial, legal, or investment advice. CMBS rates, terms, and availability are subject to change based on market conditions, property characteristics, and borrower qualifications. The rate ranges cited reflect approximate CMBS conduit pricing as of March 2026 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 with qualified financial and legal professionals before making any financing decisions.