financeLodging Magazine··1 min·For: Owner, Investor, Revenue
Hotel Financing Shifts to Complex Capital Stacks
Elevated interest rates and tighter debt standards are forcing hotel owners to move beyond simple bank mortgages toward layered financing models. Lenders are favoring creative capital structures like C-PACE, mezzanine debt, and preferred equity to bridge widening refinancing gaps.
Key Takeaways
- 1Refinancings comprise roughly 85% of current hotel lending activity as 2021-2022 bridge loans mature
- 2Alternative vehicles like C-PACE are moving mainstream, filling larger shares of capital stacks
- 3Deals under $30M see strong regional bank liquidity, while large assets require specialized private credit
Source: Lodging Magazine
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