financeasianhospitality.com··1 min·For: Owner, Investor, Revenue, GM
Rising Interest Rates Drive Up Hotel Refinancing Costs by 40%
Elevated Treasury yields are pushing commercial real estate cap rates higher, triggering an estimated 6% to 10% decline in property values. With $48 billion in hotel loans maturing through 2026, rising debt costs are directing capital toward existing assets and away from new construction.
Key Takeaways
- 1CBRE expects cap rates to rise 40-60 basis points, driving property values down 6% to 10%
- 2Debt service on refinanced hotel loans is running approximately 40% higher than original terms
- 3Roughly $48 billion in hotel loans mature across 2025 and 2026, favoring acquisitions over new builds
Source: asianhospitality.com
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