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If you own a hotel, you’ve probably started hearing more people talk about loans maturing in 2025 and 2026. And honestly, it’s for a good reason. A ton of hotel loans that were taken out from 2019 through 2021 are all coming due around the same time.
Think about where we all were back then. Some owners refinanced right before COVID hit. Others scrambled during 2020–2021 and took whatever short-term deals they could get just to make it through. Most of those loans had three-to five-year terms—which lands us exactly where we are now.
The problem is that the world today looks nothing like it did when those loans were signed. Rates are way higher. Lenders are much pickier. And hotels, depending on the market, have recovered at totally different speeds. Throw in the rising costs of labor, insurance, taxes and utilities, and you can see why a lot of owners are feeling squeezed.
But here’s the thing I keep telling friends in the business: it’s tough, yes, but it’s not hopeless. You actually have more options than you might think—you just can’t wait until the last minute.
For some owners, the hotel is performing well enough that a straightforward refinance still works. The terms might not be as attractive as they were a few years ago, but if your numbers are solid, lenders will still take a serious look.
But here’s the thing I keep telling friends in the business: it’s tough, yes, but it’s not hopeless. You actually have more options than you might think—you just can’t wait until the last minute.
Others may end up talking with their current lender about an extension. You’d be surprised how many banks are open to this right now. They don’t want to take back a hotel. If your communication has been good and your performance is improving, lenders will often work with you—maybe offering a temporary interest-only period or extending the loan a year or two.
I’ve also seen owners bring in new capital partners to help close the gap when valuations come in lower than expected. It’s not always fun to dilute ownership, but it beats being forced into a fire sale or losing the property outright. And then there are bridge loans—short-term solutions that give you time to renovate, reposition the property or just stabilize before locking into long-term debt again. They can be pricier, but sometimes they’re exactly what you need to buy time.
And yes, for some people, selling might actually make the most sense. Not because they’re in trouble, but because the math just doesn’t work for the next five years— especially with big brand Performance Improvement Plans coming. In certain markets, good properties are still getting strong offers. Better to sell on your terms than someone else’s.
Rebranding or converting can even help in the right situation. A new flag can change your competitive position or give you more favorable renovation requirements. Lenders pay attention to that.
No matter which direction you take, the biggest mistake is waiting too long. You should start looking at this stuff 12 to 18 months before your loan matures. Get a current valuation. Understand your true trailing numbers. Build your story for lenders. And talk to multiple lending sources—not just your usual bank.
The next year or two is going to be a challenge for everyone, but it’s not the end of the world. If anything, it’s a moment to step back, get organized and make the best long-term decision for your property. The owners who start early and stay proactive will be the ones who come out strong on the other side.
