$15 Million Select-Service Hotel Refinance

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $15 million select-service hotel refinance typically fits a stabilized 100 to 150 room limited-service or select-service hotel (Hampton Inn, Hilton Garden Inn, Courtyard, Holiday Inn Express, Fairfield) operated by a flag franchisee. Most $15M select-service hotel refis fund through CMBS, specialty hospitality lenders, or bank balance sheet.

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What a $15M Select-Service Hotel Capital Stack Looks Like

$15M select-service hotel refinances typically fund as a single senior loan with structure based on operating performance.

Capital Source Rate / Cost Size / LTV Notes
CMBS conduit 7.45 to 8.45% $15M / 65 to 70% LTV Stabilized select-service
Specialty hospitality bank 7.85 to 9.25% $15M / 60 to 70% LTV Multi-property operators
Bank balance sheet 7.85 to 9.45% $15M / 55 to 65% LTV Established hotel operators
Bridge debt fund SOFR + 475 to 700 $15M / 65 to 75% LTC Value-add, PIP, repositioning

Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.

Who Closes a $15M Select-Service Hotel Deal

Typical $15M select-service hotel refinance sponsors are mid-market hotel operators with 3 to 20 properties. Flag affiliation (Hilton, Marriott, IHG, Hyatt) drives lender appetite.

A Real $15M Example

On a $15.4M refinance of a 124-room Hampton Inn in a Sun Belt suburban market, the sponsor was a multi-property select-service operator. CMBS at 7.85 percent fixed 10-year, 67 percent LTV ($10.3M), with full defeasance.

Anonymized. All deal references protect borrower and lender identity.

$15M Select-Service Hotel Refinance FAQ

Select-service hotels are mid-tier limited-service hotels (Hampton Inn, Hilton Garden Inn, Courtyard, Holiday Inn Express) offering core lodging plus moderate amenities (pool, fitness, breakfast) without full-service food and beverage.
Stabilized select-service hotels typically trade at 8.00 to 9.50 percent cap rates depending on flag, market, and operating performance.
For owner-operator hotels at $5M and below SBA exposure cap, SBA 504 finances at 80 percent LTC (special-purpose 20 percent down). Above SBA limits, conventional or specialty hospitality lender programs.

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