CMBS hotel loans can finance a variety of property types, including:
Boutique Hotels: Boutique hotels are unique properties that are not flagged or branded by a major brand or franchise. Thus, they may require stronger cash flow or financials than flagged or branded properties.
Branded Full-Service Hotels: Larger hotel brands, such as Radisson, Hilton, Hilton Embassy Suites, Holiday Inn, and Best Western are often the easiest hospitality properties to finance using CMBS due to their larger size and well-known brand imprint. These assets often combine hotel rooms with retail and office space, which can technically make them mixed-use assets in the eyes of lenders.
Flagged Hotels and Motels: Super 8, Red Roof Inn, and Motel 6 are strong examples of limited-service hotel and motel franchises, which can also often be funded with CMBS.
High-End Hotels and Resorts: CMBS financing can also be a great option for luxury hotels and resorts, however, having strong property financials and cash flow are particularly important for these assets due to the high upkeep costs for these types of properties. As with other hotel property types, name-brand properties such as Ritz Carlton or Conrad hotels are generally easier to finance than boutique properties.
