How do lease terms and tenant credit affect hotel financing?

Lease terms and operator credit quality are among the most powerful drivers of hotel loan terms. A hotel with a 20 year management agreement from a Marriott or Hilton affiliated operator can qualify for LTVs of 75 to 85% and rates in the low 6% range. The same physical property with an independent operator on a 5 year agreement might only qualify for 55 to 65% LTV at 8 to 10%. The difference is that lenders underwrite the income stream, and a creditworthy national operator with a long term commitment represents a fundamentally different risk profile.

What are current hotel CMBS loan rates?

As of early 2026, hotel CMBS conduit rates typically price in the 6.75% to 9% range for stabilized flagged hotels, with the strongest sponsors at 60% LTV reaching as low as 6.25% and weaker sponsors or higher leverage pushing into the 9 to 11%+ range. Bridge loan rates for transitional hotel properties range from 8% to 15%. The total spread on the same physical hotel can exceed 9 percentage points depending on equity contribution, borrower experience, property stabilization, and flag status.

Can I refinance a hotel with an SBA 504 loan?

Yes. SBA 504 loans are available for owner occupied hotels with as little as 15% down (20% for businesses less than 2 years old). The 504 structure provides a first lien conventional loan at 50%, a CDC second lien at 35% with a fixed rate, and 15% borrower equity. Terms up to 25 years with below market fixed rates. Hotels are classified as special purpose properties under SBA guidelines.

Hotel SBA 7(a) vs 504 financing 2026, which fits?

SBA 7(a) and SBA 504 are both available for owner operator hotels but fit different profiles. SBA 7(a): up to $5M total project, 10 to 20% down, variable rate Prime + 2.25 to 3.0% (~10.75 to 11.5% in May 2026), 25 year amort on real estate portion, single loan covering acquisition + working capital + FF&E + PIP. Best for $1M to $5M owner operator deals where flexibility on use of proceeds matters. SBA 504: $5M to $20M+ total project, 15% down (20% for new operators), bank first lien (50%) + CDC second lien (35%) + 15% equity, blended cost ~8.5 to 9.5% with the CDC portion fixed at 8.25 to 9.5% for 25 years. Best for hotel acquisitions with significant real estate component where the 25 year fixed CDC rate locks in long term cost certainty. Decision rule: under $5M total project → 7(a); over $5M with real estate dominating → 504.

Hotel CMBS refinance options for the 2026 maturity wall

Approximately $18.7 billion in hotel CMBS loans mature in 2026. Nearly 70% carry floating rate debt and $5.71B in fixed rate loans have coupons below 6%, refinancing into a 6.75 to 9% rate environment. Refinance pathways for well capitalized sponsors: (1) CMBS conduit refinance at 60 to 65% LTV, 7.05 to 8.50% fixed 10 yr, non recourse, fits stabilized flagged hotels with 1.40x+ DSCR. (2) Hospitality bridge debt at SOFR + 350 to 500 bps for transitional / value add deals not yet stabilized for CMBS. (3) SBA 504 refinance for owner occupied hotels under $20M total project. (4) Sponsor funded paydown to bring leverage in line with senior CMBS underwriting, the cleanest path for sponsors with capital available. Distressed owners face DSCR shortfalls; well capitalized buyers can acquire quality assets at favorable basis points. PeerSense pre runs the 3 test underwriting (DSCR / LTV / debt yield) on every maturity wall deal before submission.

What are the hotel PIP financing options in 2026?

PIP (Property Improvement Plan) is brand mandated renovation that flagged hotels (Marriott, Hilton, IHG, Hyatt, Wyndham) must complete on a 5 to 7 year cadence to retain the flag. Typical PIP cost: $10K to $25K/key for limited service, $25K to $60K/key for full service. Five financing options: (1) escrowed PIP reserve from CMBS conduit refinance, most common for stabilized hotels, 12 to 18 month draw schedule. (2) Supplemental loan from existing senior lender, fastest if lender is supportive. (3) Hospitality bridge to perm including PIP funding, for hotels needing PIP plus recapitalization. (4) Brand affiliated FF&E program (Marriott Select, Hilton Supply Chain), vendor financing for furniture/fixtures/equipment portion. (5) Preferred equity for sponsors avoiding additional senior debt. PIP commitment signals brand affiliation continuity, which lenders view favorably during underwriting.

What DSCR do hotel lenders require?

Hotel DSCR requirements are typically higher than other commercial property types due to revenue volatility. CMBS conduits require 1.40 to 1.50x minimum DSCR. Conventional bank loans require 1.45x+. Non recourse hotel loans generally require 1.50x+. SBA's stated 504 floor is 1:1 operating cash flow to debt service (SOP 50 10 8), though CDCs and third party lenders commonly underwrite to 1.20x or higher on hotels. The higher DSCR threshold reflects the operating nature of hotels versus passive lease based income.

How is RevPAR used in hotel loan underwriting?

RevPAR (Revenue Per Available Room = ADR × Occupancy) is the single most watched hotel underwriting metric. CMBS conduits and balance sheet banks underwrite trailing 12 month RevPAR against the property's STR competitive set, looking for a RevPAR Index of 100+ (in line with comp set) or higher. STR projects 4 to 5% national RevPAR growth in 2026. A hotel outperforming its comp set typically receives 50 to 75 bps of rate improvement and 5 to 10% additional LTV.

What is the typical hotel CMBS structure on a $25M+ deal?

A typical $25M+ stabilized flagged hotel deal: Senior CMBS conduit at 60 to 65% LTV (10 year fixed, non recourse, ~7.05% in May 2026), brand mandated PIP reserve and FF&E escrow held by senior lender, and 35 to 40% sponsor equity (with JV LP capital common). Senior CMBS rate range 6.75 to 8.50% depending on sponsor strength, RevPAR Index, and flag affiliation. PeerSense underwrites the senior to the binding constraint of the 3 test (DSCR / LTV / debt yield) and pre clears with the conduit before formal application, for well capitalized sponsors who have the equity tranche in place.

What is PIP financing and how does it affect hotel loan structure?

PIP (Property Improvement Plan) is a brand mandated renovation cycle that flagged hotels (Marriott, Hilton, IHG, Hyatt, Wyndham) must complete on a 5 to 7 year cadence to retain their flag. PIP capital is typically $10,000 to $25,000 per key for limited service and $25,000 to $60,000 per key for full service. PIP funding for well capitalized sponsors typically structures as: (1) escrowed reserve from a CMBS or bank refinance, most common, 12 to 18 month draw schedule, (2) supplemental loan from the existing senior lender, fastest if lender is supportive, (3) hospitality bridge to perm that includes the PIP scope, or (4) sponsor capital paydown of the brand spec at completion. Lenders generally view PIP commitments favorably because they signal ongoing brand affiliation and demonstrate sponsor capital availability.

Which lenders actively finance hotels in 2026?

Hotel debt is originated through three primary channels: institutional CMBS conduit shelves at the major investment banks plus middle market specialty conduits, hospitality specialty bridge and debt funds, and SBA preferred lenders with a hospitality vertical. Each channel's hotel allocation shifts through the cycle, so a name list goes stale fast. PeerSense routes hotel deals across the full universe based on deal size, sponsor profile, and asset transition stage.

Who is a good capital advisor for a $20M+ hotel acquisition?

A $20M+ hotel acquisition needs an advisor who structures the full capital stack rather than sourcing a single loan: senior CMBS or balance sheet debt at 60 to 75% LTV, mezzanine debt or preferred equity filling the gap to 75 to 80% LTV, PIP and FF&E reserves, and coordination with the sponsor's equity partner. PeerSense runs this stack design first process on $20M+ hotel acquisitions and refinances, sourcing senior and mezzanine capital in parallel across a curated network rather than shopping one lender at a time. Compensation is a referral fee paid by the capital source at closing, disclosed upfront, PeerSense does not charge the sponsor.

What debt yield do hotel lenders require?

Hotel debt yield (NOI ÷ Loan Amount) is the most binding constraint for CMBS conduits in 2026. Limited service flagged hotels need 9 to 10% minimum debt yield. Full service and resort hotels need 10 to 11%. Distressed or transitional hotels going to bridge lenders often require 11%+ going in debt yield. Debt yield is the single test that prevents lenders from over leveraging on inflated cap rates. It is rate agnostic and amortization agnostic. PeerSense pre runs the debt yield test before lender submission to avoid wasted underwriting cycles.

What is the difference between bridge financing and CMBS financing for hotels?

Bridge and CMBS are sequential layers of the hotel capital stack. Bridge debt is short dated transitional capital (typically 18 to 36 months) that funds acquisition, PIP, or repositioning, pricing in the 9.50% to 11.50% range at 60% LTV against as is value, with the PIP escrowed separately. CMBS is the permanent take out (5 year or 10 year fixed non recourse) that lands at 6.25%+ for stabilized flagged hotels at 60 to 65% LTV once the trailing 12 NOI walk supports the conduit's 3 test underwriting (DSCR / LTV / debt yield). The bridge lender and the CMBS conduit are typically pre matched at origination so the take out economics are underwritten on day one. Matching the wrong bridge archetype can re price the deal at maturity or break the CMBS take out at conversion. The most common PeerSense hotel path is bridge to CMBS coordinated with a single bridge to perm shop.

How does brand flag PIP affect hotel acquisition financing?

Brand flag PIP (Property Improvement Plan) is the single most important underwriting variable on a hotel acquisition because it determines whether the lender escrows the PIP separately or lumps it into total project cost. PIP aware bridge lenders fund the acquisition at the agreed LTV against as is value and escrow the full PIP into a separate disbursement account that releases on approved draws with brand inspector sign off, preserving acquisition leverage at face value. PIP naive lenders quote a single LTC against total project cost, treating PIP as borrowed principal from day one, which compresses effective acquisition leverage (often from 60% to ~54%) and forces the sponsor to carry interest on undeployed capital. Typical PIP capex bands: $5,000 to $25,000 per key for select service flags (Hampton, Holiday Inn Express, Fairfield), $25,000 to $60,000 per key for full service (Hilton, Marriott, Hyatt Place), and $100,000+ per key for luxury / lifestyle renovation cycles. PeerSense routes hotel PIP deals exclusively to bridge lenders with documented carve out facility experience for the specific flag.

What deal size qualifies for institutional hotel CMBS?

Hotel CMBS prices by tier across three deal size bands. Select service ($10 million to $25 million) flagged properties (Hampton, Holiday Inn Express, Fairfield, Hyatt Place, Hilton Garden Inn) draw from the deepest lender pool (25+ hotel specialty conduits and regional bank CRE desks) at 65 to 70% LTV CMBS / 60% bridge, pricing 6.50% to 9.00%. Full service ($25M to $75M) properties (Hilton, Marriott, Hyatt) draw from ~15 institutional hotel CMBS conduits at 60 to 65% LTV CMBS, pricing 6.25% to 7.50%, the tightest execution band. Luxury / lifestyle ($75M+) properties (Marriott Autograph, Hilton Curio, lifestyle independents) draw from ~8 institutional + specialty lifestyle hotel funds at 55 to 65% LTV, pricing 6.50% to 8.50%. Above $100M, single asset SASB CMBS overtakes pooled conduit. RevPAR Index 100+ vs. STR comp set unlocks 50 to 75 bps of rate improvement on any tier.

What if my hotel CMBS loan is maturing and cannot be refinanced?

Hotel financing on this desk starts at 10 million dollars. PeerSense places the file with direct capital sources, and the range is set by the capital source.

Can I use hotel machinery financing for a property?

The desk starts at 10 million dollars for hotel financing. The range for machinery financing is set by the capital source.

Is a motel construction loan available?

Hotel financing on this desk starts at 10 million dollars. Construction loan terms and the range are set by the capital source.

How does hospitality equipment financing work?

The desk starts at 10 million dollars. The capital source sets the available range and structure for hospitality equipment financing.

Can I compare a 7a hotel loan with other options?

Hotel financing on this desk starts at 10 million dollars. A 7a structure and any other available range are set by the capital source.

Hotel Financing & Refinancing:CMBS, SBA 504, Bridge & Construction

Hotel loan refinance starts at 10 million dollars here. PeerSense is a capital advisory firm, not a lender, placing files with direct capital sources for refinance, acquisition, stabilization bridge financing, or later takeout.

Hotel financing size: PeerSense works on hotel financing starting at 10 million dollars.
Loan purpose: Uses include refinancing, buying a hotel, bridge financing through stabilization, and permanent financing afterward.
Cash contribution: A 75 percent median maximum loan to value means at least 25 percent cash in; conduit is about 35 percent.
Public hotel refinance: Public announcements reported a 115 million dollar hotel refinance in June 2026, completed by other parties.

Public announcements tracked by PeerSense Capital Data, dated October 2, 2026.

Talk to PeerSenseSend the file and Talk to PeerSense at (317) 452 6990 or booking page.

/ 01 · Hotel & Hospitality Capital Advisory

HOTEL & HOSPITALITY FINANCING

$10 million and up hotel loans for flagged and independent properties. Non recourse CMBS typically 6.75 to 9% (6.25% best case for the strongest sponsors), bridge capital at 8 to 15% for repositioning, and construction financing for ground up development. PeerSense sources capital through a curated network of commercial lenders and capital sources.

Talk to PeerSense (317) 452 6990

Institutional capital advisory · PeerSense matches hotel refi + PIP deals to a curated CMBS conduit, SBA 504 + hospitality bridge network · Updated May 2026

$10 million and up

Deal range

Limited + full service

55 to 90% LTV

Range

CMBS to SBA 504

5-25 yr

Term

Non recourse to fully amortizing

5.50-11.75%

May 2026

Across all programs

Indicative as of October 1, 2026. Not a quote. Lenders set final pricing at underwriting.

Last updated: May 16, 2026·By Ed Freeman, Capital Advisor. PeerSense

Hotel refinance guide October 2026

What should I know about hotel loan refinance?

Hotel loan refinance starts at 10 million dollars as of October 2, 2026. The right structure depends on property performance, existing debt, maturity timing, valuation, cash flow, and the requested proceeds. A refinance may address a maturity, improve terms, release equity, or fund required property improvements.

PeerSense is a capital advisory firm that places files with direct capital sources; the client pays the fee. Hotel financing on this desk starts at 10 million dollars. PeerSense reviews the property, borrower, existing loan, operating story, and requested structure, then places the file with appropriate direct capital sources. PeerSense does not lend, fund, approve, underwrite, or hold loans.

PeerSense Capital Data tracked 149 hotel sponsor deals at 10 million dollars or more, with a median of 87 million dollars. Hotels represented 179 of 1,384 CMBS loans at 10 million dollars or more in 2025 to 2026 trusts, or 13 percent. The tracked sponsor mix included 41 private owner operators or regional sponsors and 36 institutional fund or private equity real estate sponsors.

Tracked Lenders and Facilities

PeerSense Capital Data metrics as of October 2, 2026
Hotel sponsor deals at 10 million dollars or more	149 deals, median 87 million dollars
Hotel share of CMBS loans at 10 million dollars or more	179 of 1,384 loans, 13 percent, in 2025 to 2026 trusts
Tracked sponsor mix	REIT 9; developer 12; family office or individual 15; operating company own use 10; institutional fund or private equity real estate 36; nonprofit, government or health system 1; private owner operator or regional sponsor 41

These are tracked capital sources and market financings, not PeerSense loans, based on property capital deals, ABS EE tapes, leads, and Search Console data.

As of October 2, 2026. Next refresh November 2, 2026. The data date is October 2, 2026, and it is refreshed monthly. Read the Methodology

Recent Hotel Financing Activity

Public market financings tracked from June 2026 through July 2026
July 2026	Hotel loan	65 million dollars
July 2026	Hotel loan	38 million dollars
June 2026	Hotel loan	101 million dollars
June 2026	Hotel refinance	115 million dollars
June 2026	Hotel loan	431 million dollars
June 2026	Hotel refinance	53 million dollars

These are public market financings tracked by PeerSense Capital Data, not PeerSense transactions, and names are withheld.

Common Questions

What if my hotel CMBS loan is maturing and cannot be refinanced?: Hotel financing on this desk starts at 10 million dollars. PeerSense places the file with direct capital sources, and the range is set by the capital source.
Can I use hotel machinery financing for a property?: The desk starts at 10 million dollars for hotel financing. The range for machinery financing is set by the capital source.
Is a motel construction loan available?: Hotel financing on this desk starts at 10 million dollars. Construction loan terms and the range are set by the capital source.
How does hospitality equipment financing work?: The desk starts at 10 million dollars. The capital source sets the available range and structure for hospitality equipment financing.
Can I compare a 7a hotel loan with other options?: Hotel financing on this desk starts at 10 million dollars. A 7a structure and any other available range are set by the capital source.

Prepared by

Edward L. Freeman, Managing Director, is accountable for the PeerSense Capital Data program. Its methodology page explains how the program is maintained. Read the Methodology

Discuss Your Hotel Refinance

Send the property details, existing loan, maturity date, operating information, and requested proceeds, then Talk to PeerSense at (317) 452 6990 or use the booking page to discuss placement with direct capital sources.

Talk to PeerSenseCall (317) 452 6990

Quick Answer

What's the hotel CMBS rate and LTV right now?

Stabilized hotels at 65% LTV or lower qualify for CMBS non recourse fixed rate financing starting at approximately 6.25% for 10 year terms. May 2026 hotel CMBS rate range: 5.85 to 6.85% on limited service flagged, 6.50 to 7.50% on full service. Post PIP flagged properties with 1.40x+ DSCR and experienced sponsors are fast tracked through express conduit underwriting. PeerSense matches hotel deals to the active conduit most likely to close, across a curated network of capital sources.

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

Exit Strategy Mapping

Hotel Exit Strategy → Lender Archetype

Hotel debt is selected by the exit, not the front end coupon. The brand flag PIP cycle, the renewal cadence, the operator covenant, and the independent vs flagged distinction each force a different lender archetype to the front of the queue. Four canonical exit archetypes drive virtually every $10 million and up hotel placement PeerSense routes, matched to the conduit, bridge platform, or net lease investor that has documented experience with the specific exit mechanics. See the bridge to CMBS take out pillar for the most common path, the CMBS permanent hub for take out execution, or the bridge financing hub for the transitional layer.

PIP complete to CMBS take out

Most common exit

Rate band: 9.50 to 11.50% bridge · 6.25%+ CMBS
Leverage: 60% bridge · 60 to 65% CMBS
Term: 18 to 30 mo bridge → 10 yr fixed CMBS
Lender archetype: Bridge to perm shop coordinating with CMBS conduit

Use case: Brand flag PIP fully completed, RevPAR stabilized at trailing 12 T-12 trend, sponsor capital available, brand flag agreement in place for the full CMBS hold period. Single most common hotel exit PeerSense routes.

Bridge to CMBS take out playbook →

Brand flag renewal financing

Brand renewal driver

Rate band: 9.99 to 12.00% bridge
Leverage: 65% LTV bridge
Term: 24 to 36 mo
Lender archetype: Hotel specialty bridge with brand flag program experience

Use case: 10 year franchise agreement renewal forced PIP investment. Sponsor needs bridge capital to fund the renewal PIP scope and stabilize before refinancing. Lender must understand brand flag renewal cycles and the disbursement mechanics each program requires.

Hotel PIP to CMBS strategy →

Sale leaseback (operator retained)

Owner operator recapitalization

Rate band: Cap rate inverse · 6.50 to 8.50% effective
Leverage: 50 to 60% of leased value
Term: 15 to 25 yr NNN lease + operating agreement
Lender archetype: STNL net lease investor + sale leaseback specialty fund

Use case: Owner operator portfolios where the sponsor wants to monetize real estate while retaining hotel management. Less common but viable when the operating company has scale and creditworthy management depth. LTV functions as a cap rate inverse. The lender prices the lease, not the property.

Owner operated asset based lane →

Independent hotel CMBS direct

Stabilized direct CMBS

Rate band: 7.25%+ (independent premium)
Leverage: 55 to 65% LTV
Term: 5-yr or 10-yr fixed non-recourse
Lender archetype: Hotel experienced CMBS conduit (subset of the overall conduit universe)

Use case: Stabilized $10 million and up independent hotel without brand flag dependency. The CMBS pool tightens materially. Not every conduit underwrites independent hotels, and the ones that do require a stronger operator covenant, higher debt yield, and a deeper sponsor track record. The independent premium is the price of trading off flag anchored revenue.

CMBS permanent take out →

Capital stack archetypes · PeerSense capital advisory · Updated May 2026

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Deal Size Tier Bands

How Hotel CMBS Prices by Deal Size

Hotel CMBS prices by tier, not by a single market coupon. The same flagged property prices 75 to 150 bps tighter at $40M than a file below $10 million because the conduit pool deepens, the syndication mechanics improve, and the trailing 12 RevPAR walk holds tighter against the lender base case. Three execution tiers cover virtually every PeerSense hotel placement. Public floor is $10 million and up. For the live indicative pricing layer underneath these tiers, see the today's hotel loan rates page or the broader CMBS hub.

Hotel CMBS Deal Size Tier Bands, May 2026 Indications

Tier	Property Type	Deal Size	LTV	Rate	Lender Pool
Select service	Hampton, Holiday Inn Express, Fairfield, Hyatt Place, Hilton Garden Inn	$10 million to $25 million	65 to 70% CMBS / 60% bridge	6.50 to 9.00%	Wide, 25+ hotel specialty lenders + regional bank CRE desks
Full service	Hilton, Marriott, Hyatt, Hyatt Place, full service convention + airport properties	$25 million to $75 million	60 to 65% CMBS	6.25 to 7.50%	~15 institutional hotel CMBS conduits
Luxury / Lifestyle	Marriott Autograph Collection, Hilton Curio, lifestyle independents, resort luxury	$75 million plus	55 to 65% CMBS / specialty bridge	6.50 to 8.50%	~8 institutional + specialty lifestyle hotel funds
Above $100M, single asset SASB CMBS overtakes pooled conduit as the dominant execution. Sponsor depth, brand flag continuity, and trailing 12 RevPAR Index drive the spread.

Select service

$10 million to $25 million

Deepest lender pool in hotel CMBS. Branded select service is the lender comfort zone, predictable RevPAR bands, brand anchored revenue, transparent cost per key. Express conduit underwriting widely available for stabilized post PIP assets at 1.40x+ DSCR.

Full service

$25 million to $75 million

Tightest CMBS execution band, the sweet spot for full bond conduit pricing. F&B, banquet, parking, and ancillary revenue layers expand the underwriting walk. Trailing 12 RevPAR Index 100+ leads to 50 to 75 bps of rate improvement. Brand flag renewal cadence matters here.

Luxury / Lifestyle

$75 million plus

Thinnest lender pool, deepest underwriting. Lifestyle and luxury demand specialty conduit experience, soft brand collection mechanics, F&B heavy revenue mix, design driven capex cycles, owner operator dynamics. SASB single asset CMBS is common above $100M. Sponsor track record and operating depth gate the pool.

Capital stack archetypes · PeerSense capital advisory · Updated May 2026

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Hotel PIP Carve Out Mechanics

Why the PIP Carve Out Decides the Hotel Lender

PIP (Property Improvement Plan) is the brand mandated capital schedule a hotel franchisor enforces on the asset over a defined renewal window, typically a 10 year cycle for Marriott TID, Hilton CRP, IHG, Hyatt, and Wyndham programs. The carve out mechanics decide which lender archetype can underwrite the deal at a defensible effective acquisition LTV. The wrong archetype lumps the PIP into total project principal, compresses acquisition leverage, and forces the sponsor to carry interest on undeployed capital from day one.

PIP Aware Bridge Lender

Escrows the PIP separately

The lender funds the acquisition tranche at 60% LTV against as is value, then escrows the full PIP amount into a separate disbursement account. Draws release against approved invoices, lien waivers, brand inspector sign off, and a defined draw schedule. The acquisition leverage is preserved at face value. The PIP advance is 100% (sometimes net of a 5 to 10% holdback) of the approved brand flag capital schedule.

Worked example · $35M Hampton acquisition + $5M PIP

Acquisition price$35,000,000
Approved brand PIP$5,000,000
Total project$40,000,000
Acquisition bridge (60% LTV)$21,000,000
PIP escrow (100% advance)$5,000,000
Total bridge proceeds$26,000,000

Effective acquisition leverage = 60.0% LTV. PIP is ring fenced as a separate facility, not principal balance the sponsor carries day one interest on.

PIP Naive Bridge Lender

Lumps the PIP into principal

The lender quotes a single LTC against total project cost, and the PIP is treated as borrowed principal from day one. The sponsor carries interest on the full balance immediately, even though the PIP capital is not yet deployed. The effective acquisition leverage compresses, the trailing 12 NOI walk gets harder, and the bridge often re prices when the CMBS take out underwriter rejects the inflated principal.

Same deal, wrong lender

Total project cost$40,000,000
Single LTC bridge (60% LTC)$24,000,000
Effective acquisition leverage54.3% LTV
Sponsor equity gap$2,000,000
Day 1 interest carryFull $24M balance

Sponsor pays interest on undeployed PIP capital from day one. Acquisition leverage materially compressed. Same coupon, materially worse deal.

Brand Flag PIP Timing & Capex Bands

Brand flag PIP capex compounds across the franchise renewal cycle. Typical bands as of May 2026: select service flags (Hampton, Holiday Inn Express, Fairfield) run $5,000 to $25,000 per key; full service flags (Hilton, Marriott, Hyatt Place) run $25,000 to $60,000 per key; luxury and lifestyle renovation cycles run $100,000+ per key. The PIP scope, the disbursement mechanics, and the brand inspector sign off cadence are each archetype specific, and PeerSense routes hotel PIP deals exclusively to bridge lenders with documented carve out facility experience for the specific flag. For the full playbook see the hotel PIP → CMBS strategy pillar, model your specific deal in the hotel PIP cost calculator, or compare the bridge to perm execution mechanics in the bridge to CMBS take out pillar. CMBS side execution detail lives in the CMBS loan process guide.

Capital stack archetypes · PeerSense capital advisory · Updated May 2026

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Hotel Financing Rates by Program, May 2026

As of April 27, 2026

Program	Current Rate	Term	Loan Size	Best For
CMBS Limited Service Hotel	5.85 to 6.85%	10-yr fixed	$10 million and up	Marriott, Hilton, IHG, Hyatt flags
CMBS Full Service Hotel	6.50 to 7.50%	10-yr fixed	$10 million and up	CBD, resort, conference, branded
SBA 504 Hotel (15% down)	5.50 to 6.50%	20 to 25 yr	$10 million and up	Owner operator, smaller flags + indies
SBA 7(a) Hotel	9.50 to 11.75%	Up to 25 yr	$10 million and up	Owner operator working capital + acquisition
Hotel Bridge / PIP	8.50 to 10.80%	12 to 24 mo	$10 million and up	PIP renovation, brand conversion
Hotel Construction	7.50 to 9.50%	24 to 36 mo	$10 million and up	Ground up development
Hotel Mezzanine	11.00 to 14.00%	5 to 10 yr	$10 million and up	Stack fill subordinated to senior

CMBS Limited Service Hotel5.85 to 6.85%
Term
10-yr fixed
Loan Size
$10 million and up
Best For
Marriott, Hilton, IHG, Hyatt flags
CMBS Full Service Hotel6.50 to 7.50%
Term
10-yr fixed
Loan Size
$10 million and up
Best For
CBD, resort, conference, branded
SBA 504 Hotel (15% down)5.50 to 6.50%
Term
20 to 25 yr
Loan Size
$10 million and up
Best For
Owner operator, smaller flags + indies
SBA 7(a) Hotel9.50 to 11.75%
Term
Up to 25 yr
Loan Size
$10 million and up
Best For
Owner operator working capital + acquisition
Hotel Bridge / PIP8.50 to 10.80%
Term
12 to 24 mo
Loan Size
$10 million and up
Best For
PIP renovation, brand conversion
Hotel Construction7.50 to 9.50%
Term
24 to 36 mo
Loan Size
$10 million and up
Best For
Ground up development
Hotel Mezzanine11.00 to 14.00%
Term
5 to 10 yr
Loan Size
$10 million and up
Best For
Stack fill subordinated to senior

Rates indicative as of May 2026 across active hotel CMBS conduits + SBA preferred lenders + bridge specialists. Pricing varies with flag, RevPAR, sponsor track record, market, leverage, and PIP commitment.

Representative Hotel Deals We Structure

CCMBS Conduit

$14M

Select Service Marriott, Southeast

Rate: 6.62% fixed, 10 year

LTV: 65% | DSCR: 1.48x

Structure: Non recourse, fully assumable

Close: 52 days from application

BBridge to CMBS

$8.5M

IHG Flagged, Post PIP Renovation, Midwest

Bridge: SOFR +425, 24 month

LTC: 75% | Interest only

Exit: CMBS takeout at stabilization

Close: 18 days from term sheet

SSBA 504

$3.2M

Independent Boutique Hotel, Southwest

Rate: 5.79% fixed, 25 year

Down: 15% owner equity

Structure: Owner occupied, CDC debenture

Close: 75 days from application

Representative deal profiles showing typical structures and terms. Specific terms depend on property, borrower, and market conditions.

Hotel Loan Programs Compared

Hotel financing spans five distinct capital sources, each with fundamentally different terms. The right program depends on your property's stabilization, your equity position, your hold period, and whether the hotel carries a national flag. For the broader CMBS execution layer, see the CMBS hub; for the transitional layer, the bridge financing hub; and for the brand flag PIP playbook, the hotel PIP to CMBS strategy pillar.

Feature	CMBS / Conduit	Conventional Bank	SBA 504	Bridge	Construction
Rate Range	6.75% to 9% typical (6.25% best case)	4.99% to 8.75%	5.61% to 5.79%	8% to 15%	9% to 14%
LTV	55% to 75%	60% to 80%	Up to 85 to 90%	65% to 80%	60% to 75% LTC
Min DSCR	1.40 to 1.50x	1.45x+	1.15 to 1.25x	1.0 to 1.10x	N/A (pre stabilized)
Term	5 to 10 years fixed	3 to 15 years	Up to 25 years	12 to 36 months	18 to 36 months
Recourse	Non recourse	Full recourse	Partial recourse	Often recourse	Full recourse
Min Loan	$10 million	$10 million	$10 million	$10 million	$10 million
Best For	Stabilized flagged hotels	Relationship borrowers	Owner occupied, <$20M net worth	Acquisitions, repositioning	Ground up, PIP renovations

Rates as of March 2026. Sources: Commercial Loan Direct, Select Commercial, CREFCOA, SBA.gov. Actual rates depend on property, borrower, and market conditions.

Institutional Hotel Structuring

The Hotel Capital Stack: How $30M+ Hotel Deals Get Structured

Stabilized full service and upper midscale hotels above $20M typically require multiple capital layers: senior CMBS (or balance sheet bank) at 60 to 65% LTV, mezzanine debt or preferred equity to 75 to 80% LTV, brand mandated PIP reserves, and sponsor common equity. PeerSense structures every layer in parallel.

Tier 1: Senior Debt60 to 65%

CMBS Conduit / Bank First Mortgage

Non recourse fixed rate, 5 to 10 year term, 25 to 30 year amortization. Funded by securitized conduit (CMBS), institutional fixed rate lender, or balance sheet bank. Lien priority position.

Rate: 5.85 to 7.50%

DSCR: 1.40x+

Debt yield: 9 to 11%

Recourse: Non, w/ carve outs

Tier 2: Mezz / Pref10 to 15%

Mezzanine Debt or Preferred Equity

Subordinated capital. Bridges gap between senior debt and sponsor equity. Pledged at the holdco level (mezz) or as preferred return (pref equity).

Rate: 11 to 14%

Term: 5 to 10 yr

Coupon: Fixed/PIK

Sub: ICA required

Tier 3: PIP / FF&E5 to 10%

PIP Reserve + FF&E Escrow

Brand mandated property improvement plan capital plus 4 to 5% of gross revenue annual FF&E reserve. Funded at close as escrow, drawn on lender approval.

FF&E: 4 to 5%/yr

PIP: $10 to 25K/key

Hold: Lender escrow

Brands: Marriott/Hilton/IHG

Tier 4: Sponsor Equity20 to 30%

Common Equity (Sponsor + LPs)

Sponsor cash equity + JV partner / LP equity. Last loss position, first cash distribution above pref. Lenders require 25%+ of loan amount in net worth, 5%+ post closing liquidity.

GP/LP split: 10/90 typical

Pref return: 8 to 10%

Promote: 20 to 30% over IRR hurdle

Hold period: 5 to 10 yr

Capital stack illustration for a stabilized $30M+ hotel acquisition or refinance. Actual structure depends on flag, RevPAR trajectory, sponsor profile, and market. PeerSense sources Tier 1 + Tier 2 capital simultaneously to compress execution timelines.

Hotel Underwriting Framework

RevPAR, ADR, Occupancy & GOP: How Lenders Underwrite Hotels

Hotels are operating businesses, not passive lease properties. CMBS conduits, balance sheet banks, and bridge funds all underwrite the same five operating metrics: RevPAR, ADR, occupancy, GOP flow through, and FF&E reserves. Get these right and you qualify for the 6.25% best case CMBS rate. Miss them and your deal lands in the 9 to 11% bridge bucket.

Metric 1

ADR: Average Daily Rate

Total room revenue ÷ rooms sold.

ADR = Room Revenue / Rooms Sold

May 2026 benchmarks: Limited service $110 to 140, upper midscale $145 to 185, full service $185 to 280, luxury $400+.

Metric 2

Occupancy

Rooms sold ÷ rooms available.

Occ = Rooms Sold / Rooms Available

Underwriting floor: CMBS conduits want 65%+ trailing 12 month occupancy. Below 60% triggers bridge underwriting.

Metric 3: Primary KPI

RevPAR: Revenue Per Available Room

ADR × Occupancy. The single most watched hotel metric.

RevPAR = ADR × Occupancy

Index target: Lenders want RevPAR Index 100+ vs. STR competitive set. STR projects 4 to 5% national RevPAR growth in 2026.

Metric 4

GOP: Gross Operating Profit

Revenue minus departmental + undistributed expenses.

GOP % = GOP / Total Revenue

Flow through target: Limited service 38 to 45% GOP margin, full service 28 to 35%. Below = operator inefficiency flag.

RevPAR to NOI Walk: How Lenders Translate Hotel Performance Into Loan Proceeds

Every CMBS conduit underwriter runs the same walk: RevPAR → Total Revenue → Gross Operating Profit → House Profit → NOI → Maximum Loan. This is the single most important calculation in hotel finance.

Line Item	Formula	220 Key Example (Trailing 12 mo)
Available Room Nights	Keys × 365	220 × 365 = 80,300
Occupancy	Rooms sold / available	72%
ADR	Room rev / rooms sold	$117
RevPAR	ADR × Occ	$84.24
Room Revenue	RevPAR × keys × 365	$6,764,952
Total Revenue (incl. F&B + other)	Room rev × ~1.10 (limited svc)	$7,440,000
GOP (40% margin)	Total rev × GOP %	$2,976,000
Less: Mgmt fee, prop tax, insurance, FF&E reserve	~10% of total rev	($744,000)
Underwritten NOI	House profit. Non op	$2,232,000
Debt Yield Test (10%)	NOI / 0.10	Max Loan = $22.32M
DSCR Test (1.45x @ 7.05%, 30yr amort)	NOI / (1.45 × annual DS)	Max Loan ≈ $23.1M
Constraining proceeds (LTV @ 65% of $37M val.)	Lesser of LTV / DY / DSCR	~$24.0M senior CMBS

Walk illustrative only. Actual underwriting incorporates STR comp set RevPAR Index, brand standards, capex history, sponsor reserves, and current market debt yield (typically 9 to 11% in 2026).

Worked Example: Real World Structure

$30M CMBS Conduit Refi: 220 Key Flagged Limited Service Hotel

How PeerSense structures a typical institutional hotel refinance: the property metrics, the capital stack, the indicative pricing, and the close timeline.

220 Key Hampton Inn (Hilton Worldwide)

Suburban Sun Belt market | 12 year old build | Stabilized | Sponsor: 4 property hotel investor

$30M

Total capitalization

Property Operating Metrics (Trailing 12 Months)

Occupancy

72%

ADR

$117

RevPAR

$84

RevPAR Index (vs. STR)

108

Total Revenue

$7.44M

GOP Margin

40%

NOI

$2.23M

Appraised Value

$37M

Capital Stack: How $30M Comes Together

Senior CMBS Conduit (65% LTV)

10 year fixed, 30 year amort, non recourse w/ standard carve outs

$24.0M

@ 7.05% • DSCR 1.45x • DY 9.3%

Mezzanine Debt (16% LTV layer to 81%)

5 year, intercreditor agreement w/ senior, current pay coupon

$6.0M

@ 11.50% • PIK option

FF&E Reserve + PIP Escrow (lender held)

Hilton 7 year PIP cycle: $18,000/key over 24 months

$3.96M

Funded from senior + cash flow

Sponsor Equity (existing + JV LP)

19% remaining equity after senior + mezz; LP takes 90% of cash flow above 8% pref

$7.0M

Required net worth: $7.5M+

Blended Cost of Capital

7.94%

Blended LTV

81%

Time to Close

52 to 65 days

Why This Structure Beats Single Source Bank Debt

A typical balance sheet bank would offer this sponsor 65% LTV at 7.50% with full recourse. PeerSense splits the stack: senior CMBS at 65% non recourse plus mezzanine at 11.5% reaches 81% leverage, frees $4 to 5M of sponsor equity for the next acquisition, eliminates personal guarantees, and locks in fixed rate for 10 years. Net IRR uplift on the sponsor's equity: typically 300 to 500 bps. For a deeper look at the take out mechanics, see the CMBS loan process guide; for the bridge to perm execution path, see the bridge to CMBS take out playbook; or Talk to PeerSense to model your specific deal.

Worked example reflects typical 2026 structuring for a flagged limited service hotel. Actual terms depend on property, sponsor, brand PIP cycle, and current capital markets. Hampton Inn / Hilton trademarks belong to Hilton Worldwide; reference is illustrative.

Hotel Capital Universe, 2026

Where Hotel Debt Comes From

Hotel financing is originated through three distinct channels, each with different leverage, pricing, and execution profiles. PeerSense routes every hotel deal to the channel and lender most likely to close.

CMBS Conduits

Stabilized 10 yr Fixed Non Recourse

~8 to 10 active investment bank conduits + middle market specialty conduits. Best for stabilized branded full service or limited service at $10 million and up with experienced sponsors. Pricing 6.5 to 8.5% fixed, 65 to 70% LTV, 9 to 11% debt yield required.

Hospitality Bridge / Debt Funds

Transitional · PIP · Conversion · Recap

~15 to 20 active hospitality specialty bridge originators and CRE debt funds. Best for PIP financing, flag conversion, value add repositioning, CMBS maturity rescue. Pricing 8.5 to 12% (SOFR + 400 to 700), 65 to 75% LTC, 12 to 36 month terms.

SBA Hotel Lenders

Owner Operator 7(a) + 504

Top SBA hotel preferred lenders with hospitality vertical depth plus regional + CDC partners on 504. Best for owner operator acquisitions $10 million and up with branded limited service flags. 90% LTV via 504, 25 yr fixed CDC portion, fixed rate locked at funding.

PeerSense Routes Your Hotel Deal to the Right Capital Source

A curated network of capital relationships across CMBS conduits, hospitality bridge / debt funds, SBA preferred lenders, and institutional portfolio lenders. Every deal goes to the lenders actually transacting in your asset class, market, and leverage profile, not a generic loan request that gets ignored.

Get Routed to the Right Lender

Check Your Hotel's DSCR

Enter your TTM NOI and loan amount. See if you qualify for CMBS rates.

Hotel DSCR Calculator: Do You Hit 1.25x? Size Your Hotel CMBS Deal

Free Interactive Tool

Size Your Hotel CMBS Deal in 60 Seconds

Enter your TTM NOI and property value. See max CMBS loan, indicative rate, DSCR, debt yield, and whether your hotel qualifies for 65% LTV non-recourse pricing.

Max loan amount Indicative rate DSCR + debt yield Fit narrative No signup required

Open Deal Sizer

Why Hotel LTVs Range from 50% to 85%, and What That Means for Your Rate

In hotel financing, LTV is not a fixed number. It is a reflection of the lender's confidence in the income stream. The same physical building can qualify for 50% LTV or 85% LTV depending on who operates it, how long the management agreement runs, and whether the operator carries national brand recognition. That LTV difference alone can move your rate by 2% or more.

Flagged Hotels vs. Independent Hotels: The LTV Gap

Lenders view flagged hotels (properties operating under a national brand like Marriott, Hilton, IHG, Hyatt, or Wyndham) as fundamentally lower risk than independent properties. The flag provides a centralized reservation system, brand recognition that drives occupancy, standardized operating procedures, and a management infrastructure that survives individual ownership changes. When a lender underwrites a Courtyard by Marriott, they are underwriting the Marriott system as much as the individual property.

This perceived stability translates directly to LTV. A stabilized Marriott flagged select service hotel with a 20 year management agreement can qualify for 70 to 75% LTV from CMBS conduits and up to 80% from conventional banks. The same building as an independent boutique hotel with a 5 year management contract from a local operator might cap at 55 to 65% LTV from the same lenders. That 10 to 15% LTV gap means the flagged hotel borrower needs $1M to $1.5M less equity on a $10M property.

LTV by Hotel Type and Operator Quality

National flag, long term mgmt

70 to 85% LTV

Regional flag, mid term mgmt

65 to 75% LTV

Independent, experienced operator

55 to 65% LTV

Independent, new operator

50 to 60% LTV

Why Lease Terms and Operator Credit Drive Everything

In credit tenant lease (CTL) structures, where the property is leased to an investment grade operator on a long term basis, LTVs can reach 85%, 90%, or even 100% with rates as low as 5.83%. This is because the lender is effectively underwriting the operator's corporate balance sheet rather than the hotel's operating performance. A 20 year net lease to Marriott International is closer to a corporate bond than a hotel loan.

The inverse is equally powerful. A hotel with a 3 year management agreement from an unrated local operator introduces massive refinancing risk. If the operator leaves, revenue could drop 30 to 40% before a replacement is found. Lenders price this uncertainty through lower LTVs (more equity required) and higher rates. The lease term effectively defines the length of the guaranteed cash flow, and that duration is what lenders are really pricing.

This is why a 2% rate difference between two hotel loans is not contradictory. It is logical when you understand that the lower rate loan comes with 5 to 10% higher LTV because the tenant credit and lease term reduce risk enough to justify the additional leverage. A Hilton flagged hotel at 75% LTV and 6.5% can be lower risk than an independent hotel at 60% LTV and 8.5% because the Hilton income stream is more predictable.

The Counterintuitive Truth About Hotel LTV and Rates

Higher LTV does not always mean higher rates in hotel financing. When the additional leverage is supported by stronger lease terms, creditworthy operators, and national brand recognition, lenders will extend more capital at lower rates because the risk adjusted return is actually better. A $10M hotel with a 20 year Marriott management agreement at 80% LTV and 6.2% can be priced below the same $10M hotel with an independent operator at 60% LTV and 8.5%, because the Marriott income stream is worth more to bondholders.

The Variables That Move Hotel Loan Terms

Beyond flag status and lease duration, hotel underwriting incorporates variables that don't apply to other commercial property types. Hotels are operating businesses, not passive income properties, and lenders evaluate them accordingly.

RevPAR & Occupancy Trends

Lenders analyze trailing 12 month RevPAR against STR competitive set data. A hotel outperforming its comp set gets better terms. In 2026, STR projects 4 to 5% RevPAR growth nationally, with gateway markets outpacing secondary markets.

Flag & Management Quality

National flags (Marriott, Hilton, IHG, Hyatt) receive the best terms. Regional flags and soft brands fall in the middle. Independent hotels without a recognized management company receive the most conservative underwriting.

FF&E Reserve Requirements

Hotels require furniture, fixtures, and equipment reserves, typically 4 to 5% of gross revenue annually. Lenders impound FF&E reserves and may require PIP (Property Improvement Plan) compliance for flagged hotels before funding.

Market Tier & Demand Drivers

Gateway cities (NYC, Miami, LA) with diversified demand generators receive better terms than tertiary markets dependent on single industries. Lenders evaluate the mix of leisure, corporate, and group demand. Diversified demand = lower risk.

Remaining Management Agreement Term

The single most impactful variable after property performance. A management agreement expiring during the loan term introduces refinancing risk that lenders price through lower LTV and higher rates.

Sponsor Experience & Net Worth

Hotel specific experience matters more than general CRE experience. Conduits want sponsors who have owned and operated the same hotel category (select service, full service, resort). Net worth of 25%+ of loan amount and 5% post closing liquidity.

$48B+ in hotel CMBS maturing 2025 to 2026

Conduit lenders competing for refi volume. Best pricing window for 65% LTV sponsors.

Talk to PeerSense

Is Your Hotel Paying Prime + 2 to 3%? Now May Be the Time to Refinance into CMBS

Many hotel owners financed or refinanced during the 2022 to 2024 rate environment when SBA variable rates and bank loans were pricing at prime + 2% to prime + 3%, effective rates of 9.5% to 11.5% at peak prime. Those borrowers are now paying significantly more than today's CMBS conduit rates of 5.63 to 7.56% on stabilized flagged hotels.

If your hotel has appreciated, maintained strong occupancy, and you currently sit at 65% LTV or lower based on current appraised value, you may be in a position to refinance from a variable rate SBA or bank loan into a fixed rate CMBS conduit execution, potentially dropping your rate by 2 to 4 percentage points. On a $10M loan, moving from 10% to 6.5% saves $350,000 per year in debt service. Over a 10 year CMBS term, that is $3.5 million in savings.

Even borrowers who originally put 20 to 25% down may now have enough equity through appreciation and principal paydown to qualify for conduit LTV thresholds. The key question is whether your current property performance (trailing 12 month NOI, occupancy, RevPAR relative to comp set) meets CMBS underwriting standards (typically 1.40x+ DSCR and 7.5%+ debt yield).

For SBA hotel borrowers specifically, the transition from a variable rate 7(a) loan to a fixed rate CMBS conduit loan eliminates interest rate risk entirely. You lock in a 5 to 10 year fixed rate at today's conduit spreads instead of floating with prime. The tradeoff is that CMBS loans carry prepayment provisions (defeasance or yield maintenance), but for borrowers planning to hold 5+ years, the rate certainty is worth the reduced flexibility.

PeerSense can evaluate your current hotel loan, run the numbers on a CMBS refinance, and tell you within one conversation whether the savings justify the transition. No obligation.

Get a Free Refi Analysis

The 2026 Hotel CMBS Maturity Wall: $18.7 Billion in Hotel Debt Coming Due

The hotel CMBS market is entering a period of significant refinancing activity. According to Trepp, approximately $18.7 billion in hotel CMBS loans mature in 2026. Nearly 70% of these loans carry floating rate debt originated during the low rate environment of 2020 to 2022, and $5.71 billion in fixed rate hotel CMBS have coupons below 6%, meaning borrowers will face materially higher rates at refinancing.

Hotel CMBS delinquency rates reflected this stress: the lodging delinquency rate climbed to 5.94% in February 2026, up 38 basis points from January, though still below the 6.43% rate from one year earlier. The hotels facing the greatest pressure are those with floating rate CMBS that have exhausted extension options and now must refinance into a 6 to 8% fixed rate environment or sell.

For well capitalized buyers and owners with strong equity positions, this maturity wall creates opportunity. Distressed hotel CMBS is creating a buying environment where quality flagged hotels are trading at 8.0 to 8.5% cap rates, up from 6.5 to 7.5% cap rates in 2021 to 2022. Borrowers who can bring 30 to 40% equity, demonstrate hotel specific operating experience, and commit to a 5 to 10 year hold can acquire or refinance at historically attractive basis points.

CBRE projects hotel cap rates to compress by 5 to 15 basis points through 2026 as new supply diminishes and RevPAR improves, with luxury and upper upscale segments leading the recovery. STR forecasts 4 to 5% national RevPAR growth in 2026, supported by strong leisure demand and the return of group and corporate travel.

SBA 504 Hotel Loans: 15% Down, Fixed Rate, 25 Year Terms

For owner occupied hotels where the borrower meets SBA size standards (tangible net worth under $20 million, average net income under $6.5 million), the SBA 504 program offers the most favorable terms available in hotel financing. The structure is 50% from a conventional first lien lender, 35% from a Certified Development Company (CDC) at a below market fixed rate, and 15% borrower equity (20% for businesses less than 2 years old).

Hotels are classified as special purpose properties under SBA guidelines, which means the standard 10% down payment for general commercial real estate does not apply. Hotel borrowers need 15% minimum. Even so, 85% financing at SBA rates (currently 5.61 to 5.79%) with up to 25 year terms is the lowest cost hotel capital available for qualifying borrowers. The DSCR requirement is also more flexible than conventional hotel loans, typically 1.15 to 1.25x versus the 1.40 to 1.50x required by CMBS conduits.

The SBA 504 is particularly powerful for hotel acquisitions from $10 million and up where the borrower will actively operate the property. It is not available for pure investors or for hotels where the borrower has no operational role.

Hotel Bridge Loans and Construction Financing

Bridge loans serve hotel transactions where the property is not yet stabilized: acquisitions of underperforming hotels, brand conversions (reflagging), PIP driven renovations, and properties in lease up. Bridge rates for hotels currently range from 8% to 15% depending on the deal, with most lenders targeting 9%+ going in debt yield and 70% leverage from debt funds.

In 2026, bridge lenders are particularly focused on luxury flags in established markets. New York, South Florida, and the Carolinas are seeing the most bridge activity. The key to a successful hotel bridge execution is having the permanent takeout lined up. PeerSense structures hotel bridge loans with the CMBS or conventional refinance already mapped, so the borrower has a clear path from acquisition through stabilization through permanent financing.

Hotel construction financing is the most capital intensive and highest risk hotel lending category. Ground up hotel development loans typically require 25 to 40% equity (60 to 75% loan to cost), full recourse, and completion guarantees. Interest rates range from 9 to 14%, and terms are typically 18 to 36 months with extensions available. Lenders require a signed franchise agreement (for flagged hotels), a feasibility study, detailed construction budgets, and a stabilization timeline before funding.

PIP (Property Improvement Plan) renovation financing falls between bridge and construction. When a hotel requires a brand mandated renovation to maintain its flag, the capital can often be structured as a supplemental loan or folded into a bridge to perm refinance. The flag's requirement itself actually makes the deal more financeable. It signals ongoing brand commitment.

How PeerSense Structures Hotel Deals

PeerSense sources capital through a curated network of commercial lenders and capital sources. We structure hotel financing across a curated network of capital sources and submit each qualifying deal to CMBS conduits, balance sheet banks, institutional portfolio lenders, SBA preferred lenders, and bridge funds simultaneously. You see the full market, not one lender's answer.

Multi Source Execution

Every hotel deal is submitted to multiple capital sources. We routinely see 5 to 9 percentage point rate spreads on identical properties. The right structure and presentation determines which tier you access.

Bridge to Perm Pipeline

We structure hotel bridge loans with the permanent takeout already mapped. The bridge terms align with conduit requirements so the transition is smooth when the property stabilizes.

Fee at Closing

Our compensation is established upfront in a written agreement and paid at closing. The initial consultation and deal assessment are complimentary.

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Originators, factoring, CMBS, bridge, data center. Public floors first.

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Hotel Financing Tools & Resources

Hotel DSCR Calculator

Check your hotel's debt service coverage ratio against CMBS minimums (1.25x+). Do you hit 1.40x?

Hotel CMBS Deal Sizer

See your max CMBS loan amount, estimated rate, and whether your hotel qualifies at 65% LTV.

Free Deal Scan

Get a complimentary assessment of your hotel deal's financing options.

65% LTV Hotel CMBS Refi

Fixed rate non recourse CMBS for stabilized hotels.

CMBS Loan Guide

Full CMBS underwriting guide: rates, LTV, carve outs, defeasance.

Bridge Loans

Short term capital for hotel acquisitions and repositioning.

CMBS Balloon Maturing?

Your options when a CMBS hotel loan reaches maturity.

Active Hotel Lending Markets, Q2 2026

Markets where CMBS conduits and bridge lenders are most active for hotel deals right now.

Miami / South Florida

CMBS: 65 to 70% LTV

Bridge: SOFR +350 to 500

Resort + select service strong

Orlando, FL

CMBS: 65% LTV

Bridge: SOFR +400 to 550

Convention + theme park demand

Dallas / DFW, TX

CMBS: 65 to 70% LTV

Bridge: SOFR +375 to 500

Extended stay + suburban select

Nashville, TN

CMBS: 65% LTV

Bridge: SOFR +400 to 550

Lifestyle + boutique interest

Phoenix / Scottsdale, AZ

CMBS: 65% LTV

Bridge: SOFR +350 to 500

Resort + repositioning plays

New York Metro

CMBS: 60 to 65% LTV

Bridge: SOFR +400 to 600

Full service + limited conversion

Market data based on Q1 Q2 2026 conduit activity. Actual terms vary by property and sponsor.

How PeerSense Works

Well Capitalized Hotel Deals

65% LTV or lower, strong DSCR, experienced sponsor, $10 million and up

Fee at closing only
Direct access to a senior PeerSense advisor
Pre underwritten before lender submission
Matched to active conduit or lender

Deals Requiring Structuring

Higher LTV, limited equity, complex capital stack, or transitional property

Engagement fee applies (credited at closing)
Full deal packaging and structuring
Capital stack optimization
Multiple lender submissions

All fees are established upfront in a written agreement. Well capitalized deals at 65% LTV or lower receive priority service.

Talk to PeerSense

Occupancy, cash in, and what is on the books. No spam.

By submitting you agree to receive emails, calls, and texts about rates from PeerSense Capital Advisory. We do not sell or share your data.

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.

Hotel Financing FAQ

Hotel LTVs range from 50% to 90% depending on the loan program, property type, and borrower profile. CMBS conduits offer 55 to 75% LTV, conventional banks 60 to 80%, SBA 504 up to 85 to 90%, and USDA up to 85%. Flagged hotels with strong brand affiliations, long term management agreements, and creditworthy operators consistently receive higher LTV than independent properties.

Get Your Hotel Financing Options

Bridge / Hotel Refi: The desk will reach out. No obligation.

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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.

CMBS / Hotel Refi

$10 million and up flagged hotel, CMBS refi

Cash in about 35 percent. Named takeout.

Bridge Loan

$10 million and up value add multifamily bridge

Named takeout first. Close follows the book.

Talk to PeerSense

The network is the trust signal Fee realized at closing

Talk to PeerSense

Hotel capital from $10 million and up. CMBS, bridge, and construction. Talk to PeerSense.

Talk to PeerSense (317) 452 6990

Referral fee at closing. Initial consultation is complimentary.

Disclaimer: PeerSense sources capital through a curated network of commercial lenders and capital sources. All rates, terms, market data, and estimates shown on this page are approximate and subject to change based on market conditions, borrower qualifications, property specifics, and lender discretion. Nothing on this website constitutes financial, legal, or investment advice. Individual results vary. All information should be independently verified. Past performance and market data do not guarantee future results. Consult with qualified legal and financial professionals before making any financing decisions.

Capital Markets Advisory · Representative Deals

Representative Hotel Closes

Anonymized case studies of hospitality refinances and acquisitions PeerSense has structured across CMBS, mezz, and PIP-escrowed capital stacks.

$24,000,000

220 key flagged limited service hotel (national brand)

Hospitality

$24M Hospitality CMBS Refi, Flagged Limited Service + PIP Escrow

Refinanced 220 key flagged hotel into 10 year senior CMBS at 7.05% with $3.96M PIP escrow; bridge takeout in 64 days.

Senior Rate: 7.05%
LTV: 65%
RevPAR: $84
Occupancy: 72%

Sponsor needed a takeout for a maturing acquisition bridge while simultaneously funding a brand mandated PIP. Trailing RevPAR of $84 on 72% occupancy underwrote to a stabilized NOI that supported a $24M senior CMBS at 65% LTV, fully refinancing the bridge with no additional layers. PeerSense pre cleared three institutional CMBS conduits, selected the desk with the cleanest PIP escrow language, and escrowed $3.96M of the senior proceeds against the brand PIP scope. Non recourse, 10 year fixed, well below the prior bridge carry. Closed in 64 days.

Structure

10 yr fixed senior CMBS @ 7.05%, 65% LTV, non recourse; $3.96M PIP escrow funded from senior proceeds; takeout of maturing acquisition bridge

Closed in 64 daysSun Belt MSA2025 to 2026

Similar to your deal?Talk to PeerSense

Disclaimer: Case studies are anonymized representations of deal types PeerSense routinely structures. All borrower names, specific property addresses, and identifying details have been altered or omitted to protect client confidentiality. Loan amounts, rates, LTVs, and structural details reflect typical institutional terms PeerSense has placed; individual deals vary with credit, sponsor, and market conditions.

Deal Archetypes

Representative Deal Types We Structure

Archetypes our institutional capital advisory desk underwrites, drawn from published market ranges across CMBS, bridge, SBA, mezzanine, and private credit.

$10 million and up

CMBS Refinance

Structure10 year fixed CMBS conduit

Leverage60 to 65% LTV

Term10 years, non recourse

Indicative rate6.75 to 8.25%

ProfileStabilized multifamily, industrial, NNN · Q1 2026

Cash in about 35 percent or better so LTV sits at 65 or under. Files below $10 million sit.

$10 million and up

Bridge, Multifamily Value Add

StructureFloating rate bridge, interest only

LeverageCash in about 35 percent

Term24 to 36 months plus extension options

Indicative rateSOFR + 470 to 620 bps

ProfileClass B garden multifamily with a named takeout · Q1 2026

Name the takeout before the term sheet. Public floor is $10 million and up.

$10 million and up

NNN 1031 Exchange

StructureCMBS conduit, single tenant

Leverage65% LTV or under

Term10 years, non recourse

Indicative rate6.25 to 6.95%

ProfileInvestment grade tenant, corporate guaranteed lease · Q4 2025 / Q1 2026

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

$10 million and up

Hotel CMBS Refinance

Structure10 year fixed CMBS conduit

Leverage60 to 65% LTV

Term10 years, non recourse

Indicative rate6.75 to 8.25%

ProfileLimited service flagged hospitality · Q1 2026

Hotel is search only. Public files from $10 million. Cash in about 35 percent.

Statutory cap $5 million

SBA 7(a) Franchise Acquisition

StructureSBA 7(a), partner buyout / change of ownership

LeverageUp to 90% LTV

Term10 yr goodwill, 25 yr real estate amortization

Indicative ratePrime + 2.25 to 2.75%

ProfileMulti unit QSR / service franchise · Q1 2026

Search only. Not a growth lane. Standby seller note credited as equity.

Have a deal like these?See how we'd structure yours

Indicative of deal types our institutional capital advisory desk structures. Not a representation of completed transactions. Specific deal data available under NDA on request.

Sources & References

Hotel Financing Sources & References

STR / CoStar: U.S. Hotel Performance Data: Industry standard RevPAR, ADR, occupancy benchmarks used by hotel CMBS and bridge underwriters.
Federal Reserve: Selected Interest Rates (H.15): 10 yr Treasury benchmark + Prime, the base rates underlying hotel CMBS, SBA 504, and bridge pricing.
U.S. Small Business Administration: 504 Loan Program: Official SBA 504 program guidance for owner occupied hotel + flagged property financing.
Mortgage Bankers Association: Commercial Real Estate Research: Quarterly hotel origination volumes + delinquency tracking by lender type.
Trepp: CMBS Hotel Delinquency Tracker: Hotel specific CMBS delinquency, special servicer transfer, and maturity wall data.

External links are provided for informational and verification purposes. PeerSense is not affiliated with and does not endorse any third party site. Information was current at the time of publication.

Go Deeper on Hotel Financing

Hotel lender shortlists, PIP financing scenarios, and SBA vs CMBS decision frameworks for owner operators and institutional sponsors.

Lender Shortlists

Editorial Guides

Specialty Scenarios

See Related Rates by Program

PeerSense covers the full commercial capital stack. These are indicative levels direct capital sources have been pricing across these programs as of October 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 to 3.5% / 30d

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

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CMBS Conduit

5.60 to 7.10%

10 year Non Recourse fixed, $10 million and up, fully assumable

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Bridge Loans

9.00 to 14.00%

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

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Data Center

CRS to 89%

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

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Contracted revenue sale

Up to 89%

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

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Private Credit

7.80 to 18.00%

Non bank flexibility for commercial real estate at $10 million and up.

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SBA 7(a) & 504

Search path. Not a growth lane on this desk.

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DSCR Investor

Search path. Portfolio and multi property DSCR of $10 million and up.

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Page Review

Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense

PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
Edward L. Freeman founded PeerSense in January 2020.
In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page

Last reviewed October 2, 2026LinkedIn profile About Edward Freeman