CMBS Hotel Loans
CMBS
CMBS hotel loans are commercial mortgages on stabilized hotels that are pooled, securitized, and sold to investors as bonds. CMBS stands for Commercial Mortgage Backed Securities. It is a type of security backed by commercial properties that are “securitized” into a pool and then transferred to a trust. The trust issues a series of bonds that are sold to investors. These loans typically fit stabilized hotels and loans of about $5 million and up.
Is a CMBS loan right for me?
CMBS may fit if:
- the hotel is stabilized and producing consistent cash flow;
- you are looking at a loan of about $5 million and up;
- you prefer non-recourse financing and expect to hold through the term.
Sound confusing? Don’t worry, we’ll help you determine whether a CMBS loan is right for your hotel transaction.
Benefits of a CMBS loan for the purchase or refinance of a hotel property:
- Fixed-rate terms
- Non-recourse
- 25–30 year amortization
- CMBS loans are assumable
- Larger loan amounts
Speak with a hotel financing expert
Call 866-994-6835 or complete the form to speak with a hotel financing expert. We will talk through your deal and review your documents at no charge, with no obligation — and you do not need to have it all organized first.
Commercial Mortgage-Backed Security Loans
If you are a hotel or motel business owner and need financing for your enterprise, we are here to help. We place the financing that helps you build, buy, or refinance a hotel property. Of all the hotel loans to choose from, one of the loan types we place is the CMBS loan.
What are CMBS Loans?
CMBS loans are fixed-rate, non-recourse financing for commercial real estate investors. These loans are also known as conduit loans.
CMBS stands for Commercial Mortgage-Backed Security. They are pooled with other similar loans, packaged into bonds, and then sold to investors on the secondary market. CMBS loans are typically written with fixed-rate terms of 5, 7, or 10 years. CMBS is one of the loan programs we place regularly, and we take each deal to the lenders whose credit box actually fits it.
A CMBS loan is a type of security backed by commercial properties that are “securitized” into a pool, and then they are transferred to a trust. The trust then issues a series of bonds sold to investors.
Let Our Experts Guide You Through CMBS Loans
There is a lot to know when it comes to a CMBS loan, and our hotel loan specialists work with these loans every day. We do a lot of behind-the-scenes work for you on prepayment considerations, including defeasance and yield maintenance. In our experience, the commercial real estate market can be very complicated, and in recent years there is more to know than the average investor has time for.
Partner with a firm that works on hotel financing every day. Hotel financing is all we do, and the only people we work with are in the business of hotel financing. It is also important to know that not all CMBS loans are created equal and that terms, spreads, leverage, prepayment penalties, and property valuation considerations all vary with every lender. You need a financing partner who has no conflict of interest.
We are strictly about finding you the right loan for your hotel or motel. We work with lenders across the country, and we place financing for the acquisition, construction, or repositioning of hotel properties nationwide. We take your deal to the lenders whose programs fit it.
We do not lend or service loans ourselves. We structure and underwrite the transaction and place it with the lender best suited to it — which means there is no product of our own to steer you toward. We keep the process simple for you. Rather than servicing loans, we spend our time taking your deal to the lenders whose credit box actually fits it, and working the structure, pricing, and prepayment terms each of them will consider.
CMBS General Subordinate Debt Terms
- Loan Amount: Set by the senior lender and the deal
- Collateral: Existing cash-flowing commercial property with CMBS or Agency senior debt
- Term: Coterminous with the senior loan
- Location: Nationwide
- Leverage: Set by the senior lender and the deal
CMBS/Conduit senior loans do not usually allow for recorded junior or subordinate debt to sit behind them. This is where other loan programs, such as mezzanine debt or preferred equity, come into play to help owners or operators to raise working capital, replace subordinate debt, or recapture additional capital when selling the underlying collateral via a loan assumption.
Let Us Take Your Hotel Properties to the Next Level
Some intermediaries help their borrowers to source conduit loans for strictly traditional property types, such as office buildings or apartments, but not us. At Hotelloans.com, hospitality is all we work on — hotels, motels, and other lodging facilities.
Every type of loan available for commercial real estate is different and there is much to know. Many lenders do not fully understand the loans they are offering. Hotel finance can be challenging and when things are not done right, they often lead to delays, and many times, failures. Do not let your money be lost — partner with a firm that works on hotel financing every day.
Hotel financing is all we do, and every deal gets the same underwriting work before it goes to a lender. Contact us today to find a CMBS loan that is right for you.
Last reviewed: October 2026