How do hotel rates compare across SBA / CMBS / bridge?

May 2026 hotel program comparison: SBA 504 6.00-7.00% blended (institutional owner-operators), CMBS conduit 5.85-6.85% (institutional stabilized post-PIP), hotel bridge 9.00-11.50% (PIP execution + value-add), SBA 7(a) 10.50-11.25% (single-property entrepreneurs sub-$5M), hotel construction 9.50-12.00% (ground-up + heavy-rehab). Effective cost depends on stack composition + recourse + flexibility tradeoffs.

Hotel Rate Tracker · Updated Weekly

Today's Hotel Loan Rates — May 2026

Q: What's the post-PIP CMBS rate for a flagged hotel?

Post-PIP CMBS conduit rates by brand: 7.0-7.5% for Hampton + Courtyard + Hyatt Place + Holiday Inn Express in Tier-1 markets (best execution). 7.5-8.5% branded full-service Hilton + Marriott + Hyatt + IHG. 8.0-9.0% Choice + Wyndham branded select-service. 8.5-9.5% branded full-service in secondary markets. 9.5-11.0% unbranded boutique + independent without strong RevPAR data.

Q: What's the typical LTV for hotel loans?

May 2026 hotel LTV caps by program: SBA 504 90% LTV, SBA 7(a) 90% LTV (sometimes 85%), CMBS hotel 65-70%, hotel bridge 65-75% as-is or 70-75% loan-to-cost (LTC) on PIP scenarios, hotel construction 65% loan-to-stabilized-value. CMBS hotel LTV is the lowest among CRE property types — reflecting operating-business volatility + brand-flag concentration risk.

Q: Who are the active hotel lenders in May 2026?

Active hotel originators May 2026: CMBS conduit shelves (Wells Fargo, JPMorgan, Goldman, Citi, Deutsche Bank, BofA, Morgan Stanley, Barclays — hotel-active), hotel bridge specialists (institutional credit + family office capital sources), SBA-preferred lenders with hospitality vertical specialty (Live Oak, Newtek, Celtic, Stearns, BayFirst, Byline, Ridgestone, Pinnacle, Cadence), bank portfolio relationships (regional + community).

Current hotel loan rates as of May 1, 2026 across CMBS conduit, hotel bridge, SBA 7(a), SBA 504, and hotel construction. Sourced from active hotel-specialist lenders + SBA-preferred lenders + CMBS conduit shelves weekly.

Quick Answer

What are current hotel loan rates as of May 1, 2026?

As of May 1, 2026, hotel rates by program: CMBS hotel 5.85–6.85%, hotel bridge 9.00–11.50%, SBA 7(a) hotel 10.50–11.25%, SBA 504 hotel 6.00–7.00% blended, hotel construction 9.50–12.00%. Hotel CMBS requires 10.0-11.0% debt yield + 65-70% LTV. 10-yr Treasury 4.20%; CMBS hotel spreads 250-300 bps.

— PeerSense Capital Advisory · Updated May 1, 2026

Hotel Loan Rates by Program — May 1, 2026

As of May 1, 2026

Program	Current Rate	Term	Loan Size	Best For
CMBS Hotel (post-PIP stabilized)	5.85–6.85%	10-yr fixed non-recourse	$5M – $150M+	Institutional + family-office sponsors
SBA 504 Hotel	6.00–7.00% blended	25-yr fixed (CDC) + bank	$1.5M – $15M+	Hotel owner-operators 90% LTV
Hotel Bridge (PIP execution)	9.00–11.50%	12-36 mo IO	$5M – $200M+	PIP, repositioning, brand transition
Hotel Construction	9.50–12.00%	24-36 mo (construction-to-perm)	$10M – $250M	Ground-up + heavy rehab + branded development
SBA 7(a) Hotel	10.50–11.25%	10-yr / 25-yr amort	$500K – $5M	Single-property entrepreneurs sub-$5M
Bank Portfolio Hotel	7.00–9.00%	5-7 yr	$3M – $50M	Relationship + fast close

CMBS Hotel (post-PIP stabilized)5.85–6.85%
Term
10-yr fixed non-recourse
Loan Size
$5M – $150M+
Best For
Institutional + family-office sponsors
SBA 504 Hotel6.00–7.00% blended
Term
25-yr fixed (CDC) + bank
Loan Size
$1.5M – $15M+
Best For
Hotel owner-operators 90% LTV
Hotel Bridge (PIP execution)9.00–11.50%
Term
12-36 mo IO
Loan Size
$5M – $200M+
Best For
PIP, repositioning, brand transition
Hotel Construction9.50–12.00%
Term
24-36 mo (construction-to-perm)
Loan Size
$10M – $250M
Best For
Ground-up + heavy rehab + branded development
SBA 7(a) Hotel10.50–11.25%
Term
10-yr / 25-yr amort
Loan Size
$500K – $5M
Best For
Single-property entrepreneurs sub-$5M
Bank Portfolio Hotel7.00–9.00%
Term
5-7 yr
Loan Size
$3M – $50M
Best For
Relationship + fast close

Rates indicative as of May 1, 2026 across active hotel-specialist lenders. CMBS hotel spreads 250-300 bps over 10-yr Treasury (4.20% baseline). SBA 7(a) Prime + 2.25-3.0% variable (Prime 7.50%). SBA 504 CDC debenture rate ~6.0-6.5% on recent prints. Bridge rates depend on sponsor strength + PIP scope + as-completed value.

What Changed This Month (May 2026 vs May 2026)

10-yr Treasury fell 5 bps — from 4.25% to 4.20%. Mechanically dropped CMBS hotel rates 5-10 bps across all brand tiers.
Hotel bridge spreads compressed 25-50 bps — institutional credit appetite for hotel value-add returned in April. Limited-service bridge spreads tightened more than full-service.
SBA 504 CDC debenture rates stable at ~6.0-6.5% — recent debenture pricing favorable; SBA 504 retains its position as tightest hotel financing for owner-operator structures.
Hotel CMBS pool composition tightening — conduits selectively reducing hotel concentration in pools. Pre-clearance increasingly important to ensure pool-fit before formal submission.

Hotel Loan Program Comparison — May 2026

SBA 504: 6.00–7.00% blended (90% LTV, owner-operators)
CMBS Conduit (post-PIP): 5.85–6.85% (non-recourse, 10-yr fixed)
Bank Portfolio: 7.00–9.00% (relationship + fast close)
Hotel Bridge: 9.00–11.50% (PIP + value-add)
Hotel Construction: 9.50–12.00% (ground-up + heavy rehab)
SBA 7(a): 10.50–11.25% (entrepreneurs sub-$5M)

When Each Program Wins

SBA 504 wins on hotel owner-operator structures up to ~$15M project size — 90% LTV is unbeatable equity efficiency. CMBS conduit wins post-PIP on stabilized properties for institutional sponsors needing non-recourse + cash-out. Hotel bridge wins during PIP execution + brand transitions where stabilization will support CMBS take-out within 24-36 months. SBA 7(a) wins for single-property entrepreneurs sub-$5M who don't qualify for 504 owner-occupancy + want full SBA execution.

Where to Go Next

Full hotel financing details at Hotel Financing Hub. Brand-specific PIP strategy at Hotel PIP-to-CMBS Strategy. PIP cost estimation at Hotel PIP Cost Calculator. Compare CMBS programs at Today's CMBS Rates.

Frequently Asked Questions — Current Hotel Rates

What are current hotel loan rates (May 2026)?+

As of May 1, 2026, hotel rates by program: CMBS hotel 5.85–6.85% (10-yr fixed, non-recourse), hotel bridge 9.00–11.50% (IO 12-36 mo), SBA 7(a) hotel 10.50–11.25%, SBA 504 hotel 6.00–7.00% blended, hotel construction 9.50–12.00%. Hotel CMBS spreads 250-300 bps over 10-yr Treasury — wider than multifamily/industrial.

What's the best rate program for a $5M+ hotel acquisition?+

For institutional sponsors $5M+: SBA 504 (6.00-7.00% blended) wins on owner-operator + 90% LTV. CMBS conduit (5.85-6.85%) wins post-PIP on stabilized properties + non-recourse + cash-out. Bridge (9.00-11.50%) wins during 24-month PIP execution. Single-property entrepreneurs sub-$5M route to SBA 7(a).

What's the post-PIP CMBS rate for a flagged hotel?+

Post-PIP CMBS rates by brand: 7.0-7.5% Hampton + Courtyard + Hyatt Place + Holiday Inn Express in Tier-1 markets. 7.5-8.5% branded full-service. 8.0-9.0% Choice + Wyndham. 8.5-9.5% branded full-service in secondary markets. 9.5-11.0% unbranded boutique + independent.

What are SBA 7(a) hotel rates?+

SBA 7(a) hotel rates 10.50-11.25% as of May 2026 — Prime + 2.25-3.0% variable (Prime 7.50%). 10-year term + 25-year amortization on real estate, $5M maximum, full recourse with personal guarantee, 10% borrower equity, SBA guarantee fee 3.5-3.75% one-time at close.

What are SBA 504 hotel rates?+

SBA 504 hotel rates 6.00-7.00% blended (May 2026). Structure: 50% bank first mortgage, 40% CDC/SBA second mortgage at 25-year fixed (~6.0-6.5%), 10% borrower equity. Property must be 51%+ owner-occupied at acquisition. Best fit: hotel owner-operators, max loan $5.5M-$15M+.

What are hotel bridge rates?+

Hotel bridge rates 9.00-11.50% as of May 2026, typically interest-only 12-36 month term. Used for PIP execution, repositioning, brand transitions, or pre-stabilization hold before CMBS take-out. Loan size $5M-$200M+. LTV 65-75% as-is or 70-75% LTC on PIP scenarios.

What's the typical LTV for hotel loans?+

May 2026 hotel LTV caps: SBA 504 90% LTV, SBA 7(a) 90% (sometimes 85%), CMBS hotel 65-70%, hotel bridge 65-75% as-is or 70-75% LTC, hotel construction 65% LTV-of-stabilized. CMBS hotel LTV lowest among CRE — reflects operating-business volatility + brand-flag concentration risk.

What's the debt yield required for hotel CMBS?+

Hotel CMBS conduits require 10.0-11.0% debt yield (NOI ÷ Loan Amount) on stabilized post-PIP properties. Significantly higher than multifamily (7.5%) or industrial (8.0%). Hotel premium reflects operating-business risk + brand-flag concentration risk + RevPAR volatility.

Who are the active hotel lenders in May 2026?+

Active hotel originators: CMBS conduit shelves (Wells Fargo, JPMorgan, Goldman, Citi, Deutsche Bank, BofA, Morgan Stanley, Barclays — hotel-active), hotel bridge specialists (institutional credit + family office), SBA-preferred lenders with hospitality specialty (Live Oak, Newtek, Celtic, Stearns, BayFirst, Byline), bank portfolio relationships.

How do hotel rates compare across programs?+

May 2026 hotel program comparison: SBA 504 6.00-7.00% blended (owner-operators), CMBS conduit 5.85-6.85% (institutional stabilized), hotel bridge 9.00-11.50% (PIP), SBA 7(a) 10.50-11.25% (sub-$5M entrepreneurs), hotel construction 9.50-12.00% (ground-up + heavy-rehab).

Related Rate Hubs & Tools

See Related Rates by Program

PeerSense covers the full commercial capital stack. Rates and structures across our money pages — updated weekly.

SBA 7(a) & 504

5.50–11.75%

Up to $5M acquisition / real estate / equipment, 10% down

See current rates

CMBS Conduit

5.60–7.10%

10-yr non-recourse fixed, $5M–$500M+, fully assumable

See current rates

Bridge Loans

9.00–14.00%

12–36 mo transitional, SOFR + 470-970 bps, 65-75% LTV

See current rates

DSCR Investor

5.95–8.50%

30-yr fixed rental, qualifies on property cash flow

See current rates

Equipment Financing

5.50–12.00%

Loan, lease, SBA 504, vendor, captive — Section 179 eligible

See current rates

Hotel Financing

5.85–11.75%

CMBS + SBA 504 + bridge + PIP across all flags

See current rates

Mezzanine Debt

11.00–18.00%

Subordinate to senior, $1M–$50M, capital stack fill

See current rates

Private Credit

7.80–18.00%

Non-bank flexibility, unitranche, recap, transitional

See current rates

Invoice Factoring + ABL

0.5–3.5% / 30d

B2B receivables, trucking / staffing / construction / govt

See current rates

Editorial integrity: Rates compiled by PeerSense Capital Advisory. PeerSense is a capital advisory firm, not a lender. Content is for educational purposes only. Rates and spreads reflect approximate May 1, 2026 market conditions and may not reflect conditions at time of reading. Spreads and pricing vary by sponsor, brand-flag, market tier, leverage, and conduit pool composition. Consult an active hotel-specialist originator for transaction-specific quotes.