Soft-quote and term-sheet pricing on hospitality permanent loans nationally from May through August 2026.
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Based on soft-quote and term-sheet loan quotes on hospitality properties nationally, priced as permanent financing, from May through August 2026. This pool spans limited-service hotels, boutique hotels, extended stay, suite hotels, and motels.
Fixed-rate quotes in this pool run from 6.05% to 7.40%, with a median of 6.75%. Floating-rate quotes, presented separately, range from 6.15% to 11.16%, with a median of 7.60% — a much wider spread and a fatter right tail than fixed, consistent with hospitality's opportunistic/bridge-adjacent skew even within permanent financing. LTV has a median of 65% (40%–80%). DSCR requirements run from 1.20x to 1.50x, with a median of 1.30x. Of the quotes where recourse type was specified, the large majority carry full recourse, with a small share carrying a burn-off structure; separately, nearly all carry personal recourse guarantees.
Geographically, this pool is concentrated in Texas and California, with smaller clusters in Florida, Michigan, and a handful of other states.
Amortization schedules most commonly run 25 years, with a meaningful share also running 20 years. An interest-only period appears on only a small handful of quotes (24 months each) — IO is uncommon in this pool relative to some other property types. Loan sizes in this pool range from $1,000,000 to $10,000,000, with a median loan amount of $2,493,750.
| Metric | Range | Median |
|---|---|---|
| Fixed rate | 6.05% – 7.40% | 6.75% |
| Floating rate | 6.15% – 11.16% | 7.60% |
| LTV | 40% – 80% | 65% |
| DSCR | 1.20x – 1.50x | 1.30x |
| Recourse (of specified) | Mostly full, a small burn-off share | — |
Fixed rate by asset type
| Asset type | Range | Median |
|---|---|---|
| Limited Service Hotel | 6.25% – 7.27% | 6.75% |
| Boutique Hotel | 6.12% – 6.88% | 6.63% |
| Extended Stay | 6.90% – 7.40% | 7.05% |
| Suite Hotel | 6.05% – 6.25% | 6.15% |
| Motel | 6.95% – 7.25% | 7.10% |
Floating rate by asset type
| Asset type | Range | Median |
|---|---|---|
| Boutique Hotel | 6.15% – 11.16% | 7.60% |
| Limited Service Hotel | 7.00% – 7.50% | 7.25% |
Boutique hotel carries nearly all of this pool's floating-rate tail risk — its 6.15%–11.16% range is far wider than any fixed-rate cohort here, and wider than limited-service's floating range too.
Fixed rate by state
| State | Range | Median |
|---|---|---|
| Texas | 6.05% – 6.95% | 6.49% |
| California | 6.52% – 7.40% | 6.83% |
| Michigan | 7.05% – 7.27% | 7.25% |
Fixed rate by loan size
| Loan Size | Range | Median |
|---|---|---|
| Under $2M | 6.25% – 6.95% | 6.50% |
| $2M – $5M | 6.125% – 7.27% | 6.75% |
| $5M+ | 6.05% – 7.40% | 7.05% |
Unlike office and several other property types Lev has covered, hospitality pricing here climbs steadily with loan size — the opposite pattern, and consistent with larger hotel deals carrying more operating/flag-risk that lenders price for rather than economies of scale.
Fixed rate distribution
| Band | Share of fixed-rate quotes |
|---|---|
| 6.00% – 6.50% | About a third |
| 6.50% – 7.00% | Around 40% |
| 7.00% – 7.50% | About a third |
Fixed-rate hospitality quotes cluster far more tightly (6.00%–7.50%) than floating, where a meaningful share land above 8.00%.
Texas is both the deepest hospitality lending market in this pool and the cheapest at the median (6.49%) — California and Michigan both price meaningfully wider despite smaller samples.
FAQ
What fixed rates is Lev seeing on hospitality permanent loans right now?
Lev is seeing a median of 6.75%, with a range of 6.05% to 7.40%.
What about floating-rate quotes?
Lev is seeing floating-rate quotes range from 6.15% to 11.16%, with a median of 7.60% — both a higher median and a much wider spread than fixed, reflecting hospitality's opportunistic-financing skew.
Does hotel type affect pricing?
Yes, somewhat. Suite hotels priced tightest in this pool (6.15% median, thin sample), limited-service and boutique cluster near the pool median, and extended-stay and motel ran roughly 30–50 bps wider.
Does loan size affect pricing on hospitality deals Lev is seeing?
Yes, and in the opposite direction from some other property types — Lev is seeing rates climb from a 6.50% median under $2M to 7.05% at $5M+.
What LTV and DSCR is Lev seeing required?
Lev is seeing a median LTV of 65% and a median DSCR of 1.30x across this pool.
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