December 4, 2023

Hoteliers will see more available capital next year. Hotels are becoming one of the most financeable commercial real estate asset classes in the market given the positive leverage between cap rates and loan rates, along with continued strong operating performance. Lenders have begun to over-allocate new originations to hotels to make up for the declines in loan volumes elsewhere. This should continue into 2024 unless rates move meaningfully lower or cap rates on other asset classes move significantly higher. More