Updated November 13, 2026
Quick answer
In November 2026, SBA 7(a) hotel loans over $350,000 are capped at 10.00% variable (prime 7.00% plus 3%). A 504 blends to about 7.0-8.1% on the borrowed share. CMBS prices near 7.5-9.0% fixed at today's 10-year Treasury, and bridge loans run about 9-12% plus points. Axiant Partners, a broker in Boca Raton, compares hotel lenders. Typical ranges, not a quote.
Rates at a Glance, November 2026
This is the rate companion to hotel financing. For which program fits which deal, see SBA vs CMBS vs bank hotel loans. Here the numbers are rebuilt from today's benchmarks so you can check any quote.
| Program | How it's priced | Typical rate now | Term |
|---|---|---|---|
| SBA 7(a), over $350K | Prime + up to 3.0% (SBA cap), usually variable | Up to 10.00%; lenders may price below | Up to 25 years on real estate |
| SBA 504 | Bank first lien (~50%) + fixed CDC debenture (~40%) | About 7.0-8.1% blended | 10, 20 or 25 years on the debenture |
| CMBS | 10-year Treasury + 2.50-4.00% | About 7.5-9.0% fixed | 10-year balloon, 25-30 year amortization |
| Bank or life company | Case by case, larger sponsors | 6-7.5% as published in May 2026 | 5-10 year balloon |
| Bridge | Fixed or SOFR-based, interest-only | About 9-12% plus 1-4 points | 12-36 months |
Prime is 7.00% (Federal Reserve H.15, November 11, 2026) and the 10-year Treasury 4.98% (November 10). The 504 blend uses the 6.984% effective debenture rate from NADCO's October 2026 example and a 7-9% bank first lien. The CMBS spread and the bank and bridge ranges are the ones on our comparison page. Bank rates there were published in May 2026, and Treasury yields have risen since.
What a $3,000,000 Hotel Loan Costs Each Month
| Rate | Monthly payment, 25-year amortization | Annual debt service |
|---|---|---|
| 7.00% | $21,200 | $254,440 |
| 8.00% | $23,150 | $277,850 |
| 9.00% | $25,180 | $302,110 |
| 10.00% | $27,260 | $327,130 |
A bridge loan at 10% interest-only costs about $25,000 a month on the same $3,000,000, before points. It's cheaper each month than amortizing debt but has to be refinanced. Each 1% of rate on this loan moves the payment by roughly $2,020 a month. For SBA cap tables on smaller loans, see typical SBA loan rates.
What Moves a Hotel's Rate
- Coverage. Hotels carry more income volatility than offices or warehouses, so lenders price for it. Higher debt coverage gets better pricing.
- Flag and segment. Strong brands and limited-service hotels usually price better than weak independents. See flagged vs independent.
- Trend. Lenders read the trailing-12-month revenue per available room against the competitive set.
- PIP status. An unfunded PIP raises risk. A funded one, held by the lender, lowers it. See PIP financing.
- Operator. Experienced owners get better terms; see hotel experience.
- Location. In towns under about 50,000 people, a USDA hotel loan can be another option.
Fees and Prepayment
| Program | Upfront | Paying off early |
|---|---|---|
| SBA 7(a) | Guaranty fee, about $81,880 on a $3,000,000 loan (FY2027 estimate) | Subsidy recoupment fee of 5%, 3%, 1% in years 1-3 on loans of 15+ years |
| SBA 504 | Debenture and CDC fees, usually financed | Declining prepayment premium over the first half of the term |
| CMBS | Origination and third-party costs | Defeasance or yield maintenance |
| Bridge | 1-4 points | Usually open or a short lockout |
On a 7(a), the recoupment fee applies only if you voluntarily prepay more than 25% of the loan in a year during the first three years. Prepaying 30% of a $3,000,000 loan would cost about $45,000 in year one, $27,000 in year two and $9,000 in year three. 504 details: 504 fees and the amortization schedule, which shows the prepayment premium.
How to Read a Hotel Term Sheet
- Find the index and the spread. A 7(a) quote should say prime plus X; check it doesn't exceed prime plus 3% on a loan over $350,000.
- Check how often it adjusts. Many 7(a) loans reset quarterly.
- Ask for the amortization and the maturity. A low rate with a 5-year balloon is a different loan from a fully amortizing 25-year SBA loan.
- Add every fee and compare total cost, not the headline rate.
- Read the prepayment section if you might sell or refinance within five years.
Talk to an SBA specialist: (561) 268-0465, or get matched with hotel lenders.
Frequently Asked Questions
What are hotel loan rates right now?
In November 2026: SBA 7(a) up to 10.00% variable on loans over $350,000, SBA 504 about 7.0-8.1% blended, CMBS about 7.5-9.0% fixed and bridge loans about 9-12% plus points. These are typical ranges, not quotes.
What is the maximum rate on an SBA hotel loan?
For a variable 7(a) loan over $350,000, prime plus 3.0%. With prime at 7.00%, that is 10.00%. Smaller loans have higher caps.
Are hotel loans more expensive than other commercial real estate loans?
Usually somewhat, because hotel income changes nightly and lenders price for that volatility.
Is a 504 cheaper than a 7(a) for a hotel?
Often on rate, because the debenture is fixed for its full term. A 504 needs at least 15% down on a hotel, though, and 20% for a business two years old or less.
Is there a prepayment penalty on an SBA hotel loan?
On a 7(a) of 15 years or longer, a fee of 5%, 3% or 1% applies to voluntary prepayments over 25% in any of the first three years. A 504 debenture has its own declining premium.
Sources & Further Reading
- Federal Reserve H.15: Selected Interest Rates — Bank prime rate 7.00% on November 11, 2026; 10-year Treasury 4.98% on November 10, 2026.
- SBA SOP 50 10 8.1 (effective October 1, 2026) — The SBA's rules for 7(a) and 504 loans, including equity injection, Appendix 15 on changes of ownership, and eligibility.
- 13 CFR 120.223: Subsidy recoupment fee — The 5%, 3% and 1% fee on large voluntary prepayments of 7(a) loans of 15 years or longer.
- 13 CFR 120.910: 504 borrower contribution — 15% for a limited or special purpose building or a business two years old or less; 20% when both apply.
- NAGGL: FY 2027 7(a) and 504 fee notices — Summary of SBA Information Notice 5000-881797, the 7(a) upfront guaranty fees effective October 1, 2026.
- SBA 504 Loans — Fixed-rate financing for real estate and long-term equipment through Certified Development Companies.
Figures above describe ranges commonly seen across lenders and reflect published guidance as of the date on this page. Confirm current terms with the cited source or your lender before acting.