Hotels are some of the most valuable and most complicated properties to finance. If your hotel loan comes due in 2026 or 2027, the time to start planning is now, not a few months before the date.
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Why hotels need more lead time
Lenders treat hotels as special-purpose properties. For an SBA 504 loan, that typically means about 15% down, or 20% for a newer business. Underwriters look closely at the last two to three years of occupancy, room rates and expenses, and larger loans often need more than one lender. All of that takes time.
What a reset can cost
On a $6.5 million bank loan balance on a 25-year schedule, the payment at 4.5% is about $36,129 a month. At 7.25% it is about $46,982. That is roughly $130,000 a year in extra debt service on the same property.
Your options
- Refinance early. Start 9–12 months before the due date so you can compare lenders.
- SBA 504 refinance. A long-term fixed rate on the SBA portion can steady your payments.
- Bring in a partner. Recapitalize with an investor instead of taking on more debt.
- Sell the hotel. Confidential marketing to qualified buyers, timed before the loan is due.
Questions to ask now
When exactly is your bank loan due? Have you talked with your lender? Are your last three years of financials ready? Is a brand-required renovation coming up? Have you had a recent valuation? Answering these early gives you the most room to negotiate.
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Download the hotel owner guide (PDF)
Examples are illustrations as of October 2026, not loan quotes or appraisals. Rates, terms and eligibility change, and all loans are subject to lender approval. This is general information, not legal or tax advice.