Hotel bridge loans in 2026: the bridge prices off SOFR. The exit prices off a 5.3% Treasury.

Hotel bridge loans in late 2026 are floating-rate loans priced over SOFR. For a well-located hotel with a credible plan, debt funds are pricing transitional hotel debt at roughly SOFR plus 350 to 500 basis points, which with SOFR at 3.89% on October 5 works out to about 7.4% to 8.9% before points. In the quotes we are seeing, leverage runs 60% to 70% of value. The bridge itself has not changed much this year. The takeout has. The 10-year Treasury closed at 5.31% on October 5, its highest level since 2002, and every serious hotel lender is now sizing the bridge to a permanent refinance that costs more than it did in the spring.

Where the market stands, with dates

• Long rates. The 10-year Treasury was 5.31% on October 5, 2026, up about 110 basis points since the start of the year and about 80 since late May. The 5-year was 5.06%.
• Short rates. The Federal Reserve raised its target range to 3.75% to 4.00% on September 16, its first increase since 2023. SOFR was 3.89% on October 5, and the prime rate is 7.00%.
• Hotel demand. In August, CoStar and Tourism Economics raised their 2026 U.S. forecast to RevPAR growth of 4.4% (from 2.8% in June), with ADR up 3.1% and occupancy at 63.1%, citing a record first half for room nights sold.
• Los Angeles during the World Cup. On match days from June 11 to July 25, LA hotels averaged an ADR of $244.09, up 23% year over year, and RevPAR of $178.65, up 25%. Occupancy rose only about 2%, to roughly 73%. HVS estimates the tournament added $77.2 million in rooms revenue in Los Angeles, second only to New York.
• Hotel credit. Trepp's CMBS lodging delinquency rate rose to 6.18% in September, from 5.84% in August, which was itself up 49 basis points from July. The overall CMBS rate was 8.02%.
• Los Angeles labor cost. The city's hotel worker minimum wage rose to $25.00 an hour on July 1, 2026, plus a $4.25 hourly health payment where qualifying benefits are not provided. Under the schedule the City Council amended on May 26, it steps to $25.50 (plus $6.00) in July 2027, $28.50 in July 2028, and $30.00 in January 2030.

Two stories in the same numbers

Read the demand data alone and hotels look like the healthiest asset class in the country. Read the delinquency data alone and they look like the next problem. Both are true, and lenders are underwriting both at once.

In Los Angeles, the summer's gains came from rate, not from more occupied rooms. The World Cup pushed LA room rates up by almost a quarter while occupancy barely moved, and event pricing does not repeat next July. Meanwhile, the hotels that are falling behind are mostly carrying loans written when money was cheaper, now meeting maturities at today's rates, with labor and insurance costs that have climbed faster than revenue. A hotel's expense load is the heaviest in commercial real estate, so a modest squeeze on margin turns into a large squeeze on cash flow available for debt.

How hotel bridge lenders are sizing loans right now

Debt yield comes first. Hotel lenders size to net operating income divided by the loan amount before they look at value. Marketplace data from the second quarter showed the lowest coupons going to hotels that clear roughly a 14.5% debt yield, with friction or outright declines below about 10.5%. Conduit lenders were setting floors near 9% to 10% for limited-service hotels and 10% to 11% for full-service and resort properties.

Leverage follows. In the quotes we see, debt funds will go to 65% to 70% loan-to-value for the right asset and sponsor. Our $7.5MM Venice hospitality bridge closed at 70% LTV and 8.50% in two weeks with no appraisal required. Conservative permanent leverage runs from the high 50s to the mid 60s, and recent large-loan CMBS hotel deals have priced near 58% to 60%.

Then the exit test. This is where the 10-year matters. A bridge lender wants to see that the stabilized hotel can refinance out at today's permanent rates with room to spare. Take an illustrative hotel with $1.2MM of net operating income, sized at a 1.40x debt service coverage ratio on a 25-year amortization. At a 7.5% permanent rate, that supports about $9.67MM of debt. At 8.5%, it supports about $8.87MM. That is roughly $800,000 less refinance proceeds from a one-point move in the permanent rate. The 10-year alone is up about 80 basis points since late May and about 110 since January. A bridge loan sized in the spring against the higher number now has a gap at the exit, and the lender will close it either by cutting the bridge or by asking for more equity.

Event revenue gets normalized. Expect lenders to pull the World Cup weeks out of the trailing twelve months, or to underwrite them at last year's ADR. If your T-12 is carried by June and July, show the normalized number yourself before the lender does. It builds credibility and avoids a late surprise in sizing.

Reserves and extensions do the rest. Interest reserves, PIP or renovation reserves, and the tests attached to extension options are where hotel bridge terms differ most from one quote to the next. Two term sheets with the same spread can differ by a full point of effective cost once points, exit fees and the extension terms are counted. We walked through that math in what bridge lenders are actually quoting in 2026.

What owners should do this quarter

• Underwrite the exit at today's rates, plus a cushion. If the stabilized refinance does not work with the 10-year above 5%, size the bridge to the number that does.
• Separate the event revenue. Present the World Cup months and, later, the 2028 Olympics as their own line, with a normalized T-12 next to the reported one.
• Model the wage schedule if you own in Los Angeles. Confirm whether your property is covered, then carry the step-ups through 2030 in the pro forma. Expect lenders to do the same.
• Start maturities early. A hotel loan maturing in the next twelve months needs a plan now, not in the final ninety days. Our maturity playbook sets out the sequence, and the five fixes for low coverage apply directly to hotels.
• Price the floating-rate risk. With the Fed raising rather than cutting, a rate cap or a fixed-rate bridge option deserves a real look before you sign.

Quick answers

What are hotel bridge loan rates right now? For a well-located hotel with a credible plan, roughly SOFR plus 350 to 500 basis points from debt funds, about 7.4% to 8.9% before points as of early October 2026. Independent, heavily transitional or thinly documented hotels price higher, into the 9s and 10s with private lenders.

How much leverage can a hotel get on a bridge loan? In the quotes we see, typically 60% to 70% of value, limited in practice by debt yield and by whether the stabilized hotel can refinance out at today's permanent rates.

How fast can a hotel bridge loan close? In our experience, two to three weeks with a debt fund and a prepared sponsor; our Venice hotel loan closed in two. Bank and CMBS timelines usually run 60 to 90 days.

Will a lender count my World Cup revenue? Usually not at full value. Expect it to be normalized to the prior year's rate or excluded from the trailing twelve months.

If you own a hotel with a maturity, a renovation or an acquisition ahead, send us the numbers. We will tell you within two business days what the market will lend, from which kind of capital, and what the exit needs to look like. More on how we work with hotel owners is on our hospitality financing and bridge loan pages.

Sources. Treasury yields: Federal Reserve H.15 and FRED DGS10, October 5, 2026; REX Shares Macro Monthly, October 5, 2026. SOFR: FRED SOFR, October 5, 2026. Fed decision: Federal Reserve, September 16, 2026. Hotel forecast: CoStar and Tourism Economics via Travel Weekly, August 7, 2026. World Cup results: CoStar data via Bisnow, August 4, 2026; HVS, August 6, 2026. CMBS delinquency: Trepp via Multi-Housing News, September 28, 2026, and Yield PRO, October 4, 2026. Hotel debt yields and spreads: Bridge, Hotel CRE Quarterly Q2 2026, August 4, 2026. Los Angeles wage schedule: National Law Review, May 28, 2026. The loan sizing example is illustrative.

Rates and terms referenced are drawn from public market data, transactions arranged by Piccard Financial and recent lender quotes, reflect conditions on the dates shown, and change with the market. Nothing here is an offer or a commitment to lend. Piccard Financial is a capital markets advisory firm, not a lender.