Today's Hotel Loan Rates, May 2026
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.
Sources: Federal Reserve H.15 (10 yr Treasury, Prime), STR / CoStar Hotel Industry Data, Trepp CMBS Hotel Issuance & Spreads, Lodging Econometrics Pipeline
What are current hotel loan rates as of May 1, 2026?
As of May 1, 2026, hotel rates by program: CMBS hotel 5.85 to 6.85%, hotel bridge 9.00 to 11.50%, SBA 7(a) hotel 10.50 to 11.25%, SBA 504 hotel 6.00 to 7.00% blended, hotel construction 9.50 to 12.00%. Hotel CMBS requires 10.0 to 11.0% debt yield + 65 to 70% LTV. 10 yr Treasury 4.20%; CMBS hotel spreads 250 to 300 bps.
, PeerSense Capital Advisory · Updated May 1, 2026
Hotel Loan Rates by Program, May 1, 2026
As of
| Program | Current Rate | Term |
|---|---|---|
| CMBS Hotel (post PIP stabilized) | 5.85 to 6.85% | 10-yr fixed non-recourse |
| SBA 504 Hotel | 6.00 to 7.00% blended | 25 yr fixed (CDC) + bank |
| Hotel Bridge (PIP execution) | 9.00 to 11.50% | 12 to 36 mo IO |
| Hotel Construction | 9.50 to 12.00% | 24 to 36 mo (construction to perm) |
| SBA 7(a) Hotel | 10.50 to 11.25% | 10-yr / 25-yr amort |
| Bank Portfolio Hotel | 7.00 to 9.00% | 5-7 yr |
- CMBS Hotel (post PIP stabilized)5.85 to 6.85%
- Term
- 10-yr fixed non-recourse
- Loan Size
- $10 million and up
- Best For
- Institutional + family office sponsors
- SBA 504 Hotel6.00 to 7.00% blended
- Term
- 25 yr fixed (CDC) + bank
- Loan Size
- $10 million and up
- Best For
- Owner operator hotel at public floor
- Hotel Bridge (PIP execution)9.00 to 11.50%
- Term
- 12 to 36 mo IO
- Loan Size
- $10 million and up
- Best For
- PIP, repositioning, brand transition
- Hotel Construction9.50 to 12.00%
- Term
- 24 to 36 mo (construction to perm)
- Loan Size
- $10 million and up
- Best For
- Ground up + heavy rehab + branded development
- SBA 7(a) Hotel10.50 to 11.25%
- Term
- 10-yr / 25-yr amort
- Loan Size
- $10 million and up
- Best For
- Owner operator hotel at public floor
- Bank Portfolio Hotel7.00 to 9.00%
- Term
- 5-7 yr
- Loan Size
- $10 million and up
- 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 to 10 bps across all brand tiers.
- Hotel bridge spreads compressed 25 to 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 to 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 to 7.00% blended (90% LTV, owner operators)
- CMBS Conduit (post PIP): 5.85 to 6.85% (non recourse, 10 yr fixed)
- Bank Portfolio: 7.00 to 9.00% (relationship + fast close)
- Hotel Bridge: 9.00 to 11.50% (PIP + value add)
- Hotel Construction: 9.50 to 12.00% (ground up + heavy rehab)
- SBA 7(a): 10.50 to 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 to 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.
Current Hotel Rates Frequently Asked Questions
What are current hotel loan rates (May 2026)?+
As of May 1, 2026, hotel rates by program: CMBS hotel 5.85 to 6.85% (10 yr fixed, non recourse), hotel bridge 9.00 to 11.50% (IO 12 to 36 mo), SBA 7(a) hotel 10.50 to 11.25%, SBA 504 hotel 6.00 to 7.00% blended, hotel construction 9.50 to 12.00%. Hotel CMBS spreads 250 to 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 to 7.00% blended) wins on owner operator + 90% LTV. CMBS conduit (5.85 to 6.85%) wins post PIP on stabilized properties + non recourse + cash out. Bridge (9.00 to 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 to 7.5% Hampton + Courtyard + Hyatt Place + Holiday Inn Express in Tier 1 markets. 7.5 to 8.5% branded full service. 8.0 to 9.0% Choice + Wyndham. 8.5 to 9.5% branded full service in secondary markets. 9.5 to 11.0% unbranded boutique + independent.
What are SBA 7(a) hotel rates?+
SBA 7(a) hotel rates 10.50 to 11.25% as of May 2026, Prime + 2.25 to 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 to 3.75% one time at close.
What are SBA 504 hotel rates?+
SBA 504 hotel rates 6.00 to 7.00% blended (May 2026). Structure: 50% bank first mortgage, 40% CDC/SBA second mortgage at 25 year fixed (~6.0 to 6.5%), 10% borrower equity. Property must be 51%+ owner occupied at acquisition. Best fit: hotel owner operators, max loan $5.5M to $15M+.
What are hotel bridge rates?+
Hotel bridge rates 9.00 to 11.50% as of May 2026, typically interest only 12 to 36 month term. Used for PIP execution, repositioning, brand transitions, or pre stabilization hold before CMBS take out. Loan size $5M to $200M+. LTV 65 to 75% as is or 70 to 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 to 70%, hotel bridge 65 to 75% as is or 70 to 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 to 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 fall into four archetypes: hotel active CMBS conduit shelves at the major investment banks, hospitality specialty bridge lenders (institutional credit plus family office capital), SBA preferred lenders with a hospitality vertical, and regional plus community bank portfolio relationships. PeerSense routes each deal to the lenders actively buying that flag and service level right now.
How do hotel rates compare across programs?+
May 2026 hotel program comparison: SBA 504 6.00 to 7.00% blended (owner operators), CMBS conduit 5.85 to 6.85% (institutional stabilized), hotel bridge 9.00 to 11.50% (PIP), SBA 7(a) 10.50 to 11.25% (sub-$5M entrepreneurs), hotel construction 9.50 to 12.00% (ground up + heavy rehab).
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 monthFocus $100 million a month. Will look at $10 million a month. $10 million is not the focus.
Invoice Factoring
0.5 to 3.5% / 30dB2B invoices from $20 million a month. Advance 80 to 95 percent of face.
CMBS Conduit
5.60 to 7.10%10 year Non Recourse fixed, $10 million and up, fully assumable
Bridge Loans
9.00 to 14.00%$10 million and up. Cash in about 35 percent. Name the takeout first.
Data Center
CRS to 89%$1 billion to $30 billion plus. Signed or guaranteed hyperscaler lease.
Contracted revenue sale
Up to 89%15 year lease signed or guaranteed by a hyperscaler. Size follows the lease.
Hotel Financing
SearchHotel financing is search only for $10 million and up, with cash in about 35 percent.
Private Credit
7.80 to 18.00%Non bank flexibility for commercial real estate at $10 million and up.
SBA 7(a) & 504
SearchSearch path. Not a growth lane on this desk.
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.
Editorial integrity: Rates compiled by PeerSense Capital Advisory. PeerSense sources capital through a curated network of commercial lenders and capital sources. 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.