Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Property Type
Hotel & Motel Loans
Select Commercial specializes in hotel and motel financing nationwide from $1,500,000. Hospitality lending requires a lender that understands the sector, and we work with SBA, CMBS, bank and bridge lenders that actively finance flagged and independent hotels, with up to 90% financing for owner-operators. Compare today’s commercial mortgage rates.
Get a Free QuoteHotel Loan Rates & Terms
Rates updated as of August 23, 2026
| Loan Type | Rate* | Max LTV |
|---|---|---|
| Starting Rate | 6.75% | 90% |
- Loan amounts from $1,500,000, no maximum
- Flagged and independent hotels and motels
- Up to 90% financing available with SBA
- CMBS, bank and bridge options
- Acquisition, refinance, cash-out and repositioning
- Terms and amortizations up to 25 to 30 years
Rates last updated August 23, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary.
Hotels by the Numbers: 2026
The lodging sector is in a slow, stable growth phase. Current 2026 industry forecasts (updated January 2026) show:
- National occupancy near 62% for 2026, roughly level with 2025.
- RevPAR growth of about 0.6% to 0.9% for the year, with improvement weighted to the second half.
- ADR up about 1%, led by luxury and upper-upscale hotels while economy and midscale pricing stays flat.
- Higher-tier hotels lead: growth remains concentrated among upper-tier properties, though the gap with economy hotels has begun to narrow.
- A heavy refinancing calendar: about 30% of hotel mortgage balances mature in 2026, the highest share of any property type (Mortgage Bankers Association, 2025 survey).
Compare Your Hotel Loan Options
Hospitality is management-intensive, so we route each deal to lenders who understand hotels:
| Program | Typical rate* | Max leverage | Best for |
|---|---|---|---|
| SBA 504 | 6.03% | Up to 90% | Real estate for flagged and independent hotels |
| SBA 7(a) | 6.75% | Up to 90% | Owner-operators, acquisition and working capital |
| CMBS / conduit | 6.66% | Up to 65-70% | Flagged hotels, non-recourse |
| Bank / portfolio | 6.75% | Up to 65% | Stabilized, relationship-based |
| Bridge | 9.00% | Up to 70% LTC | Repositioning and PIP |
Most conventional lenders avoid hotels because they are an operating business as much as real estate. Working with hospitality-focused lenders improves your terms and certainty of closing.
Rates last updated August 23, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary.
Hotel & Motel Properties We Finance
Select Commercial specializes in hotel loans and hotel financing. Hospitality lending requires a lender that understands the sector, and most conventional lenders lack that expertise. We finance:
- Flagged (franchised) and independent hotels and motels nationwide
- Acquisition, refinance and cash-out
- Repositioning and property improvement plan (PIP) financing
- Owner-operated hotels through SBA, with up to 90% financing available
Hotel Real Estate: 2026 Outlook
The lodging sector enters 2026 in a period of moderate growth, with a clear divide by hotel class and improvement expected in the second half of the year.
Modest RevPAR gains. Industry forecasts updated in January 2026 call for U.S. RevPAR growth of about 0.6% to 0.9% this year, with ADR up about 1% and national occupancy near 62%. Performance is expected to strengthen in the second half as consumer spending firms.
A performance divide by class. Growth remains concentrated among luxury and upper-upscale hotels, while economy and midscale properties see flatter pricing. The gap has begun to narrow as lower-priced hotels regain momentum, and supply growth is normalizing across chain scales.
Private capital is active. With institutional buyers cautious about near-term RevPAR volatility, private capital, family offices and specialized hospitality funds have stepped in, often acquiring at attractive bases ahead of expected rate stabilization.
A one-time tailwind. The 2026 World Cup, hosted across the U.S., Canada and Mexico, is expected to add a modest full-year lift to U.S. RevPAR, concentrated in host markets.
A heavy maturity calendar. About 30% of hotel mortgage balances mature in 2026, the highest of any property type, making early refinancing planning essential.
2026 World Cup: A Tailwind for Host-Market Hotels
The 2026 FIFA World Cup, hosted across the U.S., Canada and Mexico from June to July 2026, is expected to lift hotel performance in host metros and their surrounding areas, with gains concentrated around match dates. U.S. host markets where we actively finance hotels include Atlanta, Boston, Dallas-Arlington, Houston, Kansas City, Los Angeles-Inglewood, Miami, New York-New Jersey, Philadelphia, the San Francisco Bay Area and Seattle.
Owners in and around host markets looking to complete renovations or PIP work ahead of peak demand can use our bridge program with a path to permanent financing.
Beyond the host metros, we finance hotels in every state, including Florida, Texas, California, Arizona and Tennessee.
Hotel Refinancing in 2026
Hotels face the heaviest refinancing calendar in commercial real estate this year: about 30% of hotel mortgage balances mature in 2026, versus 17% for commercial mortgages overall (Mortgage Bankers Association, 2025 Survey of Loan Maturity Volumes). Owners with maturing CMBS, bank or bridge debt should start the process early, especially where a franchise-required PIP is due at refinance. We arrange hotel refinances, including cash-out, across SBA, CMBS, bank and bridge programs, with written pre-approvals within 48 hours.
Why Finance Your Hotel With Select Commercial
With more than 30 years of experience and relationships across SBA, CMBS, bank and bridge lenders that actively finance hospitality, we place hotel loans that generalist lenders will not, and we compare every option for your property. There are no upfront application or processing fees, and we issue written pre-approvals within 48 hours at no cost or obligation.
What Our Clients Say
“I needed an SBA loan and found Select Commercial. It was obvious Stephen knew everything about commercial loans. If you are starting a small business, definitely give them a call.”
Larry S. · Washington, DC“I needed a business mortgage for my small business. Stephen helped me the entire way and was always accessible. I highly recommend them.”
Jonathan M. · Seattle, WA“As a real estate attorney, I trust that Select Commercial will deliver apartment building loans and commercial mortgages in a timely manner. The rates and terms offered are excellent. I heartily recommend them.”
David S. · New York City“Select Commercial was very helpful with my multifamily mortgage. Stephen went over several options and we came up with the best lender to meet my needs. I got the funds and also lowered my payments.”
Gary M. · Portland, ORGet Your Hotel Loan Quote
No cost, no obligation. Written answers within 48 hours on hotel and motel loans from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up