{
  "publisher": "Matthews Hotel Markets",
  "site": "https://matthewshotelmarkets.com",
  "description": "Pages on this site that have a Markdown copy. Each Markdown copy is generated from the same data as its HTML page. The HTML URL is the canonical URL to cite.",
  "documentation": "https://matthewshotelmarkets.com/developers",
  "pages": [
    {
      "title": "How does hotel financing work, and what does it cost right now?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Hotel loans are sized by cash flow, not by price. A lender starts with trailing twelve-month NOI, applies a debt service coverage test and a debt yield floor, then lends whatever is smaller. Loan-to-value is the third test, not the first. Fixed-rate quotes start from the 10-year Treasury, which was 4.94 percent on September 17, 2026.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"How does hotel financing work, and what does it cost right now?.\" https://matthewshotelmarkets.com/hotel-financing. Last updated 2026-09-18."
    },
    {
      "title": "Can I use a 1031 exchange to buy or sell a hotel?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/1031-exchange-hotels",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/1031-exchange-hotels.md",
      "lastUpdated": "2026-09-17",
      "directAnswer": "Yes, for the real property. Section 1031 covers like-kind real property held for investment or business use, so an apartment building can exchange into a hotel. The 45-day identification and 180-day closing clocks start at the sale closing. Personal property, including FF&E, stopped qualifying after the 2017 tax law. Engage a qualified intermediary before closing, not after.",
      "author": "Miles Cortez III",
      "citeAs": "Miles Cortez III, Matthews Hotel Markets. \"Can I use a 1031 exchange to buy or sell a hotel?.\" https://matthewshotelmarkets.com/hotel-financing/1031-exchange-hotels. Last updated 2026-09-17."
    },
    {
      "title": "How do I finance converting my hotel to a new brand?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/brand-conversion-financing",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/brand-conversion-financing.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Most owners fund a conversion with a renovation or bridge loan plus cash, sometimes offset by franchisor key money that arrives after opening. Hilton's disclosure document for Spark, a conversion-only brand, issued March 30, 2026, estimates $3,251,531 to $5,906,193 to convert a 100-room hotel, before real estate. Leaving the old flag early can cost 60 months of royalties on top.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"How do I finance converting my hotel to a new brand?.\" https://matthewshotelmarkets.com/hotel-financing/brand-conversion-financing. Last updated 2026-09-18."
    },
    {
      "title": "What is a bridge loan and when should a hotel owner use one?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/bridge-loans",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/bridge-loans.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A bridge loan is short-term floating-rate debt, usually interest-only, used when the hotel is not yet financeable by a permanent lender. It buys time for a PIP, a ramp-up, or a repositioning. It floats over SOFR, which was 3.85 percent for September 17, 2026, and usually requires a purchased rate cap. Identify the exit before you sign, not after.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"What is a bridge loan and when should a hotel owner use one?.\" https://matthewshotelmarkets.com/hotel-financing/bridge-loans. Last updated 2026-09-18."
    },
    {
      "title": "What is a CMBS loan and how does it work for hotels?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/cmbs-loans",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/cmbs-loans.md",
      "lastUpdated": "2026-09-17",
      "directAnswer": "A CMBS loan is a fixed-rate hotel loan originated to be pooled and sold as bonds. It is non-recourse with standard carve-outs, often has interest-only periods, and is sized to a debt yield floor. Its fixed rate starts from Treasuries; the 10-year was 4.94 percent on September 17, 2026. You get non-recourse and give up flexibility, because the servicer follows the documents.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"What is a CMBS loan and how does it work for hotels?.\" https://matthewshotelmarkets.com/hotel-financing/cmbs-loans. Last updated 2026-09-17."
    },
    {
      "title": "How do I finance hotel construction in 2026?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/construction-loans",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/construction-loans.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Most ground-up hotels are financed with a bank construction loan that funds in draws, then refinanced into permanent debt after opening. Federal guidelines cap a bank's construction loan at 80 percent of value, and bank capital rules favor projects with at least 15 percent borrower equity. Private lodging construction ran at a $23.3 billion annual rate in July 2026, down 9.9 percent from July 2025.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"How do I finance hotel construction in 2026?.\" https://matthewshotelmarkets.com/hotel-financing/construction-loans. Last updated 2026-09-18."
    },
    {
      "title": "How is extended-stay hotel financing different?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/extended-stay-financing",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/extended-stay-financing.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Lenders size an extended-stay hotel with the same DSCR, debt yield and LTV tests as any hotel, but length of stay changes eligibility and risk. SBA finances a hotel only if more than 50 percent of prior-year revenue came from guests staying 30 days or less. Hilton's 2026 Home2 Suites disclosure shows 78.0 percent occupancy in 2025, with 42 percent of room nights from stays of five nights or more.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"How is extended-stay hotel financing different?.\" https://matthewshotelmarkets.com/hotel-financing/extended-stay-financing. Last updated 2026-09-18."
    },
    {
      "title": "Hotel financing questions, answered",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/faq",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/faq.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "This page collects the short questions that do not need their own page. SBA's 7(a) program lists no minimum loan size and caps loans at $5 million. Origination is typically quoted in points on the loan amount. A franchise comfort letter is a closing condition on most branded hotel loans. The 10-year Treasury was 4.94 percent on September 17, 2026.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"Hotel financing questions, answered.\" https://matthewshotelmarkets.com/hotel-financing/faq. Last updated 2026-09-18."
    },
    {
      "title": "Who are the biggest hotel lenders, and which type fits my deal?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/hotel-lenders-by-type",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/hotel-lenders-by-type.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Five lender types compete for hotel debt in September 2026 and they want different deals. Banks want a relationship and recourse. Life companies want stabilized, low-leverage, long-term. CMBS wants non-recourse at higher leverage. SBA wants owner-operators under program caps. Debt funds want transition. Matching the asset to the type is most of the work.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"Who are the biggest hotel lenders, and which type fits my deal?.\" https://matthewshotelmarkets.com/hotel-financing/hotel-lenders-by-type. Last updated 2026-09-18."
    },
    {
      "title": "What are current hotel loan interest rates?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/hotel-loan-rates",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/hotel-loan-rates.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Hotel loan rates are quoted as a spread over an index, not as a flat number. Fixed-rate quotes track the 5- and 10-year Treasury; floating quotes track SOFR. On September 17, 2026, the 10-year Treasury was 4.94 percent. In our experience, hotels price wider than apartments or industrial, because hotel revenue reprices every night.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"What are current hotel loan interest rates?.\" https://matthewshotelmarkets.com/hotel-financing/hotel-loan-rates. Last updated 2026-09-18."
    },
    {
      "title": "How does hotel debt placement actually work?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/how-debt-placement-works",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/how-debt-placement-works.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Debt placement is a competitive process, not an introduction. The broker packages the asset, takes it to the lenders most likely to want it, collects term sheets against a common deadline, and normalizes them. It costs a fee, usually a percentage of the loan, and pays for itself when the gap between quotes beats the fee. Fixed quotes start from the 10-year Treasury, 4.94 percent on September 17, 2026.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"How does hotel debt placement actually work?.\" https://matthewshotelmarkets.com/hotel-financing/how-debt-placement-works. Last updated 2026-09-18."
    },
    {
      "title": "Can I get an interest-only hotel loan?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/interest-only-loans",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/interest-only-loans.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Yes, from some lenders. Bridge and construction loans are usually interest-only, and CMBS conduits often grant it: in one conduit pool marketed in February 2026, 67.3 percent of the balance was interest-only to maturity and another 10.1 percent had a partial interest-only period. SBA 7(a) loans must fully amortize with no balloon, and bank regulators require limits on non-amortizing loans.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"Can I get an interest-only hotel loan?.\" https://matthewshotelmarkets.com/hotel-financing/interest-only-loans. Last updated 2026-09-18."
    },
    {
      "title": "Who lends on hotels under $5 million?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/lenders-under-5-million",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/lenders-under-5-million.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Four groups make most hotel loans under $5 million: SBA 7(a) lenders, banks paired with an SBA 504 debenture, community banks and credit unions lending conventionally, and rural lenders using the USDA Business and Industry guarantee. A 7(a) loan caps at $5 million. For fiscal 2026 USDA guarantees 85 percent of a B&I loan under $5 million. Prime has been 7.00 percent since September 17, 2026.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"Who lends on hotels under $5 million?.\" https://matthewshotelmarkets.com/hotel-financing/lenders-under-5-million. Last updated 2026-09-18."
    },
    {
      "title": "How much hotel debt is maturing in 2026 and 2027?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/loan-maturities-2026-2027",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/loan-maturities-2026-2027.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Trepp counts $18.7 billion of hotel CMBS maturing in 2026, and nearly 70 percent of it floats, reported August 3, 2026. No public source gives a hotel-specific 2027 figure, so this page does not state one. The number that decides your own outcome is smaller and local: does today's NOI support today's balance at today's rate?",
      "author": "Miles Cortez III",
      "citeAs": "Miles Cortez III, Matthews Hotel Markets. \"How much hotel debt is maturing in 2026 and 2027?.\" https://matthewshotelmarkets.com/hotel-financing/loan-maturities-2026-2027. Last updated 2026-09-18."
    },
    {
      "title": "What do lenders require for a hotel loan?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/loan-requirements",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/loan-requirements.md",
      "lastUpdated": "2026-09-17",
      "directAnswer": "A hotel lender wants three things: cash flow that clears its coverage test, a sponsor with hotel experience and liquidity, and a clean franchise position. The package is a trailing twelve-month P&L, a STAR report, a PIP status letter, the franchise agreement and a personal financial statement. As of September 2026, SBA 504 caps a hotel at 85 percent of project cost.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"What do lenders require for a hotel loan?.\" https://matthewshotelmarkets.com/hotel-financing/loan-requirements. Last updated 2026-09-17."
    },
    {
      "title": "What is a loan workout and how does it work for a distressed hotel?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/loan-workouts",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/loan-workouts.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A workout is a negotiated change to loan terms after a default or an imminent one. In securitized loans, the file transfers to a special servicer whose duty runs to the bondholders, not to you. Trepp put the lodging CMBS special servicing rate at 8.63 percent in July 2026. Workouts buy time. They do not fix an asset whose cash flow cannot carry the debt at any term.",
      "author": "Miles Cortez III",
      "citeAs": "Miles Cortez III, Matthews Hotel Markets. \"What is a loan workout and how does it work for a distressed hotel?.\" https://matthewshotelmarkets.com/hotel-financing/loan-workouts. Last updated 2026-09-18."
    },
    {
      "title": "Can I get a non-recourse loan on a hotel?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/non-recourse-loans",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/non-recourse-loans.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Yes, on a stabilized hotel from the right lender. CMBS conduits, life companies and many debt funds lend non-recourse with carve-outs. Banks usually want a guaranty, and SBA rules generally require one from every owner of 20 percent or more. The 10-year Treasury, the index for a fixed-rate non-recourse quote, was 4.94 percent on September 17, 2026. Non-recourse is never unconditional.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"Can I get a non-recourse loan on a hotel?.\" https://matthewshotelmarkets.com/hotel-financing/non-recourse-loans. Last updated 2026-09-18."
    },
    {
      "title": "How do I finance a hotel PIP or renovation?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/pip-and-renovation-loans",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/pip-and-renovation-loans.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A PIP is funded four ways: cash from reserves, a future-funding facility inside a bridge loan, a capex holdback in a refinance, or a price reduction when you sell. The brand sets the scope and the deadline. A future-funding facility floats over SOFR, which was 3.85 percent for September 17, 2026. Get the scope in writing before you price any of the four.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"How do I finance a hotel PIP or renovation?.\" https://matthewshotelmarkets.com/hotel-financing/pip-and-renovation-loans. Last updated 2026-09-18."
    },
    {
      "title": "Should I refinance my hotel or sell it instead?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/refinance-or-sell",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/refinance-or-sell.md",
      "lastUpdated": "2026-09-17",
      "directAnswer": "Run both numbers before you decide. Refinancing works when today's NOI supports today's balance at today's rate and you still believe the hold thesis. Selling works when the proceeds gap is permanent, the PIP is larger than your appetite, or the equity is better deployed elsewhere. The binding variable is usually NOI, not the rate. The 10-year Treasury was 4.94 percent on September 17, 2026.",
      "author": "Miles Cortez III",
      "citeAs": "Miles Cortez III, Matthews Hotel Markets. \"Should I refinance my hotel or sell it instead?.\" https://matthewshotelmarkets.com/hotel-financing/refinance-or-sell. Last updated 2026-09-17."
    },
    {
      "title": "How do I refinance a hotel loan before it matures?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/refinance",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/refinance.md",
      "lastUpdated": "2026-09-17",
      "directAnswer": "Start twelve months before maturity. Order a fresh valuation, get the PIP status in writing, and size the new loan against today's rate, not the old one. The 10-year Treasury, the index a fixed refinance prices from, was 4.94 percent on September 17, 2026. If the new loan is smaller than the balance, the gap closes with equity, an extension, mezzanine, or a sale.",
      "author": "Miles Cortez III",
      "citeAs": "Miles Cortez III, Matthews Hotel Markets. \"How do I refinance a hotel loan before it matures?.\" https://matthewshotelmarkets.com/hotel-financing/refinance. Last updated 2026-09-17."
    },
    {
      "title": "What is the difference between an SBA 7(a) loan and an SBA 504 loan for a hotel?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-financing/sba-7a-vs-504",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-financing/sba-7a-vs-504.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Both programs finance hotels. 7(a) is one loan from one lender, capped at $5 million, and it can cover working capital. 504 is two loans: a bank first lien plus a fixed-rate CDC debenture capped at $5 million for a hotel. The 25-year debenture rate for September 2026 funding was 6.54 percent. 7(a) is simpler. 504 fixes part of the cost for up to 25 years.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"What is the difference between an SBA 7(a) loan and an SBA 504 loan for a hotel?.\" https://matthewshotelmarkets.com/hotel-financing/sba-7a-vs-504. Last updated 2026-09-18."
    },
    {
      "title": "What is involved in selling a hotel?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/sell-a-hotel",
      "markdownUrl": "https://matthewshotelmarkets.com/sell-a-hotel.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Selling a hotel is a marketed process. As of September 2026, our published playbook runs about 24 weeks from engagement to close. It moves from a value opinion to a document package, a buyer list, a call for offers, then due diligence and franchise approval. Hilton's 2025 Hampton disclosure document gives the brand 60 days to rule on a completed transfer application.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"What is involved in selling a hotel?.\" https://matthewshotelmarkets.com/sell-a-hotel. Last updated 2026-09-18."
    },
    {
      "title": "How much does it cost to sell a hotel through a broker?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/sell-a-hotel/broker-fees",
      "markdownUrl": "https://matthewshotelmarkets.com/sell-a-hotel/broker-fees.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Hotel brokerage is usually paid as a success fee at closing, quoted as a percentage of the sale price. Broker pay is not set by law and is negotiable. It is not the whole cost. Title, legal, transfer taxes and loan payoff costs add up. A brand transfer adds an application fee, $0 to $200,000 on Hampton deals in 2024, which the buyer pays.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How much does it cost to sell a hotel through a broker?.\" https://matthewshotelmarkets.com/sell-a-hotel/broker-fees. Last updated 2026-09-18."
    },
    {
      "title": "What documents do I need to sell my hotel?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/sell-a-hotel/documents-needed",
      "markdownUrl": "https://matthewshotelmarkets.com/sell-a-hotel/documents-needed.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Three tiers: the marketing package a buyer sees before an NDA, the CIM they see after, and the data room they get in due diligence. As of September 2026, in our experience, the four documents that decide the deal are the trailing twelve-month P&L, the STAR report, the franchise agreement with the PIP status letter, and three years of capital expenditure history.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"What documents do I need to sell my hotel?.\" https://matthewshotelmarkets.com/sell-a-hotel/documents-needed. Last updated 2026-09-18."
    },
    {
      "title": "Selling a hotel: questions owners ask",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/sell-a-hotel/faq",
      "markdownUrl": "https://matthewshotelmarkets.com/sell-a-hotel/faq.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "This page answers the short questions hotel owners ask before a sale and links each one to the page that goes deeper. The anchors, as of September 2026: about 24 weeks from engagement to close in our published playbook, 60 days for Hilton to rule on a Hampton change of ownership, and a 25 percent maximum federal rate on gain from building depreciation.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"Selling a hotel: questions owners ask.\" https://matthewshotelmarkets.com/sell-a-hotel/faq. Last updated 2026-09-18."
    },
    {
      "title": "Should I sell my hotel before the franchise agreement expires?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/sell-a-hotel/franchise-agreement-expiration",
      "markdownUrl": "https://matthewshotelmarkets.com/sell-a-hotel/franchise-agreement-expiration.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Usually decide two to three years out, not in the final months. Hilton's Hampton disclosure document, issued March 30, 2025, gives the owner no right to renew. Re-licensing is at the brand's sole discretion and carries a $100,000 application fee and a PIP. A buyer signs a new agreement and gets a PIP too, so the real comparison is who funds the renovation and keeps the upside.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"Should I sell my hotel before the franchise agreement expires?.\" https://matthewshotelmarkets.com/sell-a-hotel/franchise-agreement-expiration. Last updated 2026-09-18."
    },
    {
      "title": "How long does it take to sell a hotel through a broker?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/sell-a-hotel/how-long-it-takes",
      "markdownUrl": "https://matthewshotelmarkets.com/sell-a-hotel/how-long-it-takes.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "About 24 weeks from engagement to close in our published playbook, as of September 2026: roughly 12 weeks to a selected buyer, then about 12 weeks of contract, due diligence and franchise approval. The brand clock is set by contract. Hilton's 2025 Hampton agreement gives the franchisor 60 days from a completed application to consent. Preparation moves the front half most.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How long does it take to sell a hotel through a broker?.\" https://matthewshotelmarkets.com/sell-a-hotel/how-long-it-takes. Last updated 2026-09-18."
    },
    {
      "title": "How do I choose a hotel broker?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/sell-a-hotel/how-to-choose-a-hotel-broker",
      "markdownUrl": "https://matthewshotelmarkets.com/sell-a-hotel/how-to-choose-a-hotel-broker.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Ask these nine questions before you sign an engagement in 2026: recent closings in your chain scale and price band, who does the underwriting, how the buyer list is built, the fee and what it covers, the marketing plan, reporting cadence, the value opinion methodology, references from sellers who did not close, and whether they will tell you to hold. The answers to the last two tell you the most.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How do I choose a hotel broker?.\" https://matthewshotelmarkets.com/sell-a-hotel/how-to-choose-a-hotel-broker. Last updated 2026-09-18."
    },
    {
      "title": "What is the step-by-step process for selling a hotel?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/sell-a-hotel/how-to-sell-a-hotel",
      "markdownUrl": "https://matthewshotelmarkets.com/sell-a-hotel/how-to-sell-a-hotel.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Eight stages over roughly 24 weeks in our published playbook, as of September 2026: value opinion, package, targeted marketing, call for offers, best and final, purchase agreement, due diligence, close. Franchise approval runs in parallel with due diligence. Hilton's 2025 Hampton agreement gives the brand 60 days from a completed application to decide. In our experience, failed deals usually fail over financial discrepancies, not price.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"What is the step-by-step process for selling a hotel?.\" https://matthewshotelmarkets.com/sell-a-hotel/how-to-sell-a-hotel. Last updated 2026-09-18."
    },
    {
      "title": "Should I sell my hotel off-market or list it publicly?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/sell-a-hotel/off-market-vs-marketed",
      "markdownUrl": "https://matthewshotelmarkets.com/sell-a-hotel/off-market-vs-marketed.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Most owners should run a confidential marketed process: a targeted buyer list under NDA, not a public listing and not a single-buyer deal. As of September 2026, our published playbook markets that way from week 3 to week 8 of a 24-week sale. Off-market skips those weeks but removes competing bids. No method hides a sale from the brand, which gets 60 days' notice under Hilton's 2025 Hampton agreement.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"Should I sell my hotel off-market or list it publicly?.\" https://matthewshotelmarkets.com/sell-a-hotel/off-market-vs-marketed. Last updated 2026-09-18."
    },
    {
      "title": "How do I sell a hotel that is losing money or in default?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/sell-a-hotel/selling-a-distressed-hotel",
      "markdownUrl": "https://matthewshotelmarkets.com/sell-a-hotel/selling-a-distressed-hotel.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Yes, you can sell, and selling early keeps you in control. Once a loan defaults, the exits are a lender-approved sale, a receivership sale, a note sale, a deed in lieu or a bankruptcy sale, and the lender or a court controls most of them. Trepp put the lodging CMBS special servicing rate at 8.63 percent in July 2026. Forgiven debt can be taxable, so model the tax before choosing.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How do I sell a hotel that is losing money or in default?.\" https://matthewshotelmarkets.com/sell-a-hotel/selling-a-distressed-hotel. Last updated 2026-09-18."
    },
    {
      "title": "What taxes do I pay when I sell a hotel?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/sell-a-hotel/taxes-when-selling-a-hotel",
      "markdownUrl": "https://matthewshotelmarkets.com/sell-a-hotel/taxes-when-selling-a-hotel.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A hotel sale is taxed in layers. Per the IRS as of September 18, 2026: gain from building depreciation is unrecaptured section 1250 gain, taxed at a maximum 25 percent. Gain on furniture and equipment, up to the depreciation taken, is ordinary income. The rest is long-term capital gain at up to 20 percent. A 3.8 percent net investment income tax and state taxes can apply on top.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"What taxes do I pay when I sell a hotel?.\" https://matthewshotelmarkets.com/sell-a-hotel/taxes-when-selling-a-hotel. Last updated 2026-09-18."
    },
    {
      "title": "What is my hotel worth, and who decides?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-valuation",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-valuation.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Hotel value is stabilized NOI divided by a cap rate, cross-checked against comparable sales and per-key pricing. Two variables move it: the NOI itself, and the cap rate buyers apply to it. HVS reported in April 2026 that U.S. hotel trades averaged an 8.2 percent cap rate in 2025, with stabilized hotels typically selling at 8 to 9 percent.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"What is my hotel worth, and who decides?.\" https://matthewshotelmarkets.com/hotel-valuation. Last updated 2026-09-18."
    },
    {
      "title": "Why did my hotel appraise for less than I expected?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-valuation/appraisal-lower-than-expected",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-valuation/appraisal-lower-than-expected.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Usually for four reasons. The appraiser valued the hotel as is, not as you plan it. The appraiser added a management fee and a reserve to your expenses. The cap rate was wider than yours. And renovation cost was deducted. Federal rules define the value an appraiser must estimate, and HVS put a normal stabilized hotel cap rate near 8.0 to 8.5 percent in April 2026.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"Why did my hotel appraise for less than I expected?.\" https://matthewshotelmarkets.com/hotel-valuation/appraisal-lower-than-expected. Last updated 2026-09-18."
    },
    {
      "title": "How much is my branded select-service hotel worth?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-valuation/branded-select-service-hotel-value",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-valuation/branded-select-service-hotel-value.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Nobody can price a specific Hampton Inn or Holiday Inn Express from its flag and key count. The method is the same for every branded select-service hotel: buyer-ready NOI divided by a cap rate, less any change-of-ownership PIP. The Matthews Hotel Index for Q1 2026 puts select-service cap rates at 7.50 to 8.75 percent across 14 markets.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How much is my branded select-service hotel worth?.\" https://matthewshotelmarkets.com/hotel-valuation/branded-select-service-hotel-value. Last updated 2026-09-18."
    },
    {
      "title": "What is a hotel broker opinion of value, and how is it different from an appraisal?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-valuation/broker-opinion-of-value",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-valuation/broker-opinion-of-value.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A broker opinion of value is a broker's estimate of what a hotel would sell for today, produced for the owner. An appraisal is a USPAP-compliant valuation by a licensed or certified appraiser, usually ordered by a lender. As of September 2026, federal banking rules generally require an appraisal on commercial real estate loans above $500,000, and bank regulators do not accept a broker price opinion in its place.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"What is a hotel broker opinion of value, and how is it different from an appraisal?.\" https://matthewshotelmarkets.com/hotel-valuation/broker-opinion-of-value. Last updated 2026-09-18."
    },
    {
      "title": "What is a good cap rate for a hotel in 2026?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-valuation/hotel-cap-rates",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-valuation/hotel-cap-rates.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "There is no single good hotel cap rate. It depends on segment, market, PIP status and buyer pool. The Matthews Hotel Index for Q1 2026 puts select-service across its 14 covered markets at 7.50 to 8.75 percent, full-service at 6.50 to 8.25 percent, and resort and lifestyle at 6.00 to 7.75 percent. Use the band that matches your asset, then adjust.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"What is a good cap rate for a hotel in 2026?.\" https://matthewshotelmarkets.com/hotel-valuation/hotel-cap-rates. Last updated 2026-09-18."
    },
    {
      "title": "Walk me through the math on valuing a select-service hotel",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-valuation/how-to-value-a-hotel",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-valuation/how-to-value-a-hotel.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Start with occupancy times ADR to get RevPAR, multiply by keys and 365 to get rooms revenue, add other revenue, subtract departmental and undistributed expenses, franchise fees, management fee, taxes, insurance and an FF&E reserve. That is NOI. Divide by a cap rate, using the Q1 2026 band for your segment. Every normalization you make to that NOI has to survive a buyer's audit.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"Walk me through the math on valuing a select-service hotel.\" https://matthewshotelmarkets.com/hotel-valuation/how-to-value-a-hotel. Last updated 2026-09-18."
    },
    {
      "title": "How do rising interest rates change what my hotel is worth?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-valuation/interest-rates-and-hotel-value",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-valuation/interest-rates-and-hotel-value.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Higher rates lower what a leveraged buyer can pay, because the same NOI supports a smaller loan. They also put upward pressure on cap rates, but not one for one and not on a fixed schedule. The 10-year Treasury rose from 4.75 percent on August 31, 2026 to 4.94 percent on September 17. In CBRE's H1 2026 survey, hotel cap rates compressed while Treasury yields rose.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How do rising interest rates change what my hotel is worth?.\" https://matthewshotelmarkets.com/hotel-valuation/interest-rates-and-hotel-value. Last updated 2026-09-18."
    },
    {
      "title": "How does a PIP affect my hotel's value?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-valuation/pip-and-hotel-value",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-valuation/pip-and-hotel-value.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A property improvement plan lowers value three ways: the cost of the work, the income lost while rooms are out of service, and a premium for the risk that scope grows. Buyers deduct all three from stabilized value. HVS wrote in April 2026 that older hotels facing a big renovation will likely trade above the normal 8.0 to 8.5 percent cap rate.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How does a PIP affect my hotel's value?.\" https://matthewshotelmarkets.com/hotel-valuation/pip-and-hotel-value. Last updated 2026-09-18."
    },
    {
      "title": "What is my hotel worth per key?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-valuation/revpar-multiples-and-per-key",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-valuation/revpar-multiples-and-per-key.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Price per key is sale price divided by room count. It is a check on a valuation, not a way to produce one, because it ignores NOI. LW Hospitality Advisors counted 107 U.S. hotel sales over $10 million in Q2 2026 at an average of about $218,000 per room. That average says little about a 90-key select-service hotel. Your NOI and cap rate do.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"What is my hotel worth per key?.\" https://matthewshotelmarkets.com/hotel-valuation/revpar-multiples-and-per-key. Last updated 2026-09-18."
    },
    {
      "title": "What is the difference between select-service and full-service hotel investment?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-valuation/select-service-vs-full-service",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-valuation/select-service-vs-full-service.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Select-service hotels carry higher margins and simpler operations, so they price in a narrower cap-rate band than full-service. In our Q1 2026 index that is 7.50 to 8.75 percent versus 6.50 to 8.25 percent. Full-service adds F&B, meeting space and labor, which adds revenue and volatility together. Select-service is easier to underwrite, finance and sell; full-service has more levers to pull.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"What is the difference between select-service and full-service hotel investment?.\" https://matthewshotelmarkets.com/hotel-valuation/select-service-vs-full-service. Last updated 2026-09-18."
    },
    {
      "title": "How do I buy a hotel?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/buy-a-hotel",
      "markdownUrl": "https://matthewshotelmarkets.com/buy-a-hotel.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Buying a hotel takes three approvals and one contract: a lender, a brand if the hotel is flagged, an operator the brand accepts, and a purchase agreement that gives you time to test the numbers. As of September 2026, SBA 504 requires at least 15 percent down on a hotel, and Hilton's 2025 Hampton agreement requires 60 days' written notice of a change of ownership.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How do I buy a hotel?.\" https://matthewshotelmarkets.com/buy-a-hotel. Last updated 2026-09-18."
    },
    {
      "title": "Should I buy a branded or independent hotel?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/buy-a-hotel/branded-vs-independent",
      "markdownUrl": "https://matthewshotelmarkets.com/buy-a-hotel/branded-vs-independent.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A brand sells you demand and charges a share of rooms revenue for it. Hilton's 2025 Hampton disclosure lists a 6 percent royalty plus a 4 percent program fee, and reports an average RevPAR index of 121.0 for comparable Hamptons in 2024. An independent keeps those fees and carries its own marketing. As of September 2026, no lender publishes different terms for either.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"Should I buy a branded or independent hotel?.\" https://matthewshotelmarkets.com/buy-a-hotel/branded-vs-independent. Last updated 2026-09-18."
    },
    {
      "title": "What due diligence do I need before buying a hotel?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/buy-a-hotel/due-diligence-checklist",
      "markdownUrl": "https://matthewshotelmarkets.com/buy-a-hotel/due-diligence-checklist.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Eight workstreams, run at the same time: the STR report, financials restated to the USALI format, a property condition assessment under ASTM E2018-24, an ALTA/NSPS survey, a Phase I under ASTM E1527-21, the franchise application, the liquor license and the staffing plan. As of September 2026, Hilton's Hampton agreement requires 60 days' written notice of a change of ownership.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"What due diligence do I need before buying a hotel?.\" https://matthewshotelmarkets.com/buy-a-hotel/due-diligence-checklist. Last updated 2026-09-18."
    },
    {
      "title": "How do I buy my first hotel with no hotel experience?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/buy-a-hotel/first-hotel-no-experience",
      "markdownUrl": "https://matthewshotelmarkets.com/buy-a-hotel/first-hotel-no-experience.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "You can, but someone qualified has to run it. Hilton's 2025 Hampton disclosure requires qualified and experienced management, by you or by a management company the brand has approved. A first-time owner must complete owner education within 90 days of a change of ownership. Lenders do not publish an experience minimum. As of September 2026, SBA's rule leaves that to the lender's own credit process.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How do I buy my first hotel with no hotel experience?.\" https://matthewshotelmarkets.com/buy-a-hotel/first-hotel-no-experience. Last updated 2026-09-18."
    },
    {
      "title": "How much money do I need to buy a hotel?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/buy-a-hotel/how-much-money-do-you-need",
      "markdownUrl": "https://matthewshotelmarkets.com/buy-a-hotel/how-much-money-do-you-need.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "There is no single number. As of September 2026, the one equity minimum written into federal regulation for a hotel purchase is SBA 504: at least 15 percent of project cost, or 20 percent for a business two years old or less. Conventional lenders set their own and do not publish it. Then add the brand's application fee, $200,000 on Hilton's 2025 Hampton schedule.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"How much money do I need to buy a hotel?.\" https://matthewshotelmarkets.com/buy-a-hotel/how-much-money-do-you-need. Last updated 2026-09-18."
    },
    {
      "title": "How much does a hotel franchise cost?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-franchise-costs",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-franchise-costs.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A hotel franchise costs an application fee up front, a percentage of rooms revenue every month, and the cost of building or renovating to the brand's standard. Hilton's Hampton disclosure document issued March 30, 2026 lists a $100,000 application fee, a 6 percent royalty, a 4 percent program fee, and an estimated initial investment of $17,043,739 to $24,732,532 for an 89-room hotel, before land.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How much does a hotel franchise cost?.\" https://matthewshotelmarkets.com/hotel-franchise-costs. Last updated 2026-09-18."
    },
    {
      "title": "How much does a Best Western franchise cost in 2026?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-franchise-costs/best-western",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-franchise-costs/best-western.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Best Western is a membership association, and its disclosure document issued February 27, 2026 prices a membership, not a standard franchise. The entrance fee for a 75-room Best Western is $54,000. Monthly fees are 5 percent of property room revenue, marketing and technology fees 2.10 percent, plus per-room dues and advertising. Item 7 estimates $581,925 to $2,557,075 to convert a 75-room hotel.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How much does a Best Western franchise cost in 2026?.\" https://matthewshotelmarkets.com/hotel-franchise-costs/best-western. Last updated 2026-09-18."
    },
    {
      "title": "How much does a Comfort Inn or Comfort Suites franchise cost in 2026?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-franchise-costs/comfort-inn",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-franchise-costs/comfort-inn.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Choice Hotels' Comfort disclosure document, issued April 1, 2026, estimates $822,951 to $3,335,295 to convert an 80-room hotel to a Comfort Inn or Comfort Suites, and $10,318,405 to $16,302,115 to build an 89-room Comfort Inn, both before real estate. The affiliation fee is $500 per room with a $50,000 minimum. The royalty is 6 percent and the marketing and reservation fee 3.5 percent of gross room revenues.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How much does a Comfort Inn or Comfort Suites franchise cost in 2026?.\" https://matthewshotelmarkets.com/hotel-franchise-costs/comfort-inn. Last updated 2026-09-18."
    },
    {
      "title": "How much does a Days Inn franchise cost in 2026?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-franchise-costs/days-inn",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-franchise-costs/days-inn.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Wyndham's Days Inn disclosure document, issued March 31, 2026, estimates $248,324 to $3,627,625 to convert a 100-room hotel the owner already holds, and $8,128,742 to $10,088,760 to build an 89-room Days Inn, before land. The initial fee is the greater of $35,000 or $350 per room. The royalty is 5.5 percent and the system assessment fee 3.8 percent of gross room revenues.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How much does a Days Inn franchise cost in 2026?.\" https://matthewshotelmarkets.com/hotel-franchise-costs/days-inn. Last updated 2026-09-18."
    },
    {
      "title": "How much does a DoubleTree franchise cost in 2026?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-franchise-costs/doubletree",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-franchise-costs/doubletree.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Hilton's 2026 DoubleTree Franchise Disclosure Document, issued March 30, 2026, estimates $31,454,554 to $108,661,784 to open a newly built 225-room DoubleTree and $33,007,054 to $126,260,147 for a 225-room DoubleTree Suites, both excluding real estate. The application fee is $85,000, the monthly royalty is 5 percent of gross rooms revenue and the monthly program fee is 4 percent.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How much does a DoubleTree franchise cost in 2026?.\" https://matthewshotelmarkets.com/hotel-franchise-costs/doubletree. Last updated 2026-09-18."
    },
    {
      "title": "How much does a Hampton Inn franchise cost in 2026?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-franchise-costs/hampton-inn",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-franchise-costs/hampton-inn.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Hilton's 2026 Hampton Franchise Disclosure Document, issued March 30, 2026, estimates $17,043,739 to $24,732,532 to open a newly built 89-room Hampton Inn and $19,964,850 to $29,121,080 for a 113-room Hampton Inn & Suites, both excluding real estate. The application fee is $100,000, the monthly royalty is 6 percent of gross rooms revenue and the monthly program fee is 4 percent.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How much does a Hampton Inn franchise cost in 2026?.\" https://matthewshotelmarkets.com/hotel-franchise-costs/hampton-inn. Last updated 2026-09-18."
    },
    {
      "title": "How much does a Hilton Garden Inn franchise cost in 2026?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-franchise-costs/hilton-garden-inn",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-franchise-costs/hilton-garden-inn.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Hilton's 2026 Hilton Garden Inn Franchise Disclosure Document, issued March 30, 2026, estimates $25,499,320 to $37,352,033 to open a typical 134-room hotel, excluding real estate. The franchise application fee is $100,000, the monthly royalty is 5.5 percent of gross rooms revenue, the monthly program fee is 4 percent, and Hilton Honors is 3.3 percent of total eligible guest folio.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How much does a Hilton Garden Inn franchise cost in 2026?.\" https://matthewshotelmarkets.com/hotel-franchise-costs/hilton-garden-inn. Last updated 2026-09-18."
    },
    {
      "title": "How much does a Home2 Suites franchise cost in 2026?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-franchise-costs/home2-suites",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-franchise-costs/home2-suites.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Hilton's 2026 Home2 Suites Franchise Disclosure Document, issued March 30, 2026, estimates $18,075,688 to $26,550,592 to open a newly built 107-suite hotel, excluding real estate. The franchise application fee is $100,000, the monthly royalty is 6 percent of gross rooms revenue, the monthly program fee is 3.5 percent, and Hilton Honors is 2.0 percent of total eligible guest folio.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How much does a Home2 Suites franchise cost in 2026?.\" https://matthewshotelmarkets.com/hotel-franchise-costs/home2-suites. Last updated 2026-09-18."
    },
    {
      "title": "How much does a Homewood Suites franchise cost in 2026?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-franchise-costs/homewood-suites",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-franchise-costs/homewood-suites.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Hilton's 2026 Homewood Suites Franchise Disclosure Document, issued March 30, 2026, estimates $23,757,245 to $34,728,465 to open a newly built 131-suite hotel, excluding real estate. The application fee is $100,000. The monthly royalty on a new build or conversion is 3.5 percent of gross rooms revenue in year one, 4.5 percent in year two and 5.5 percent after that, and the program fee is 2.5 percent.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How much does a Homewood Suites franchise cost in 2026?.\" https://matthewshotelmarkets.com/hotel-franchise-costs/homewood-suites. Last updated 2026-09-18."
    },
    {
      "title": "How much does a Hyatt Place franchise cost in 2026?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-franchise-costs/hyatt-place",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-franchise-costs/hyatt-place.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Hyatt's 2026 Hyatt Place disclosure document, issued March 27, 2026 and amended August 5, 2026, estimates $23,431,820 to $29,885,898 to build a 127-room hotel, excluding real estate. The application fee is $75,000, or $150,000 to buy an existing Hyatt Place. Ongoing, the royalty is 5 percent and the commercial services fee 3.5 percent of gross rooms revenue.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How much does a Hyatt Place franchise cost in 2026?.\" https://matthewshotelmarkets.com/hotel-franchise-costs/hyatt-place. Last updated 2026-09-18."
    },
    {
      "title": "How much does a La Quinta franchise cost in 2026?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-franchise-costs/la-quinta",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-franchise-costs/la-quinta.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Wyndham's La Quinta disclosure document, issued March 31, 2026, estimates $1,670,705 to $7,399,531 to convert a 100-room hotel the owner already holds, and $13,063,365 to $18,217,394 to build a 110-room La Quinta, before land. The initial fee is the greater of $55,000 or $550 per room. The royalty is 5.5 percent for the first 24 months and 6 percent after, plus a 3.5 percent system assessment fee.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How much does a La Quinta franchise cost in 2026?.\" https://matthewshotelmarkets.com/hotel-franchise-costs/la-quinta. Last updated 2026-09-18."
    },
    {
      "title": "How much does a Spark by Hilton franchise cost in 2026?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-franchise-costs/spark-by-hilton",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-franchise-costs/spark-by-hilton.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Hilton's 2026 Spark by Hilton Franchise Disclosure Document, issued March 30, 2026, estimates $3,251,531 to $5,906,193 to convert a 100-room hotel, excluding real estate. Spark is offered for conversions only. The franchise application fee is $75,000, the monthly royalty is 5.5 percent of gross rooms revenue, the monthly program fee is 3.5 percent, and Hilton Honors is 2 percent of total eligible guest folio.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How much does a Spark by Hilton franchise cost in 2026?.\" https://matthewshotelmarkets.com/hotel-franchise-costs/spark-by-hilton. Last updated 2026-09-18."
    },
    {
      "title": "How much does a Super 8 franchise cost in 2026?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-franchise-costs/super-8",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-franchise-costs/super-8.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Wyndham's Super 8 disclosure document, issued March 31, 2026, estimates $285,156 to $2,626,641 to convert a 100-room hotel the owner already holds, and $5,043,737 to $7,141,542 to build a 65-room Super 8, before land. The initial fee is the greater of $25,000 or $250 per room. The royalty is 5.5 percent and the system assessment fee 3 percent of gross room revenues.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How much does a Super 8 franchise cost in 2026?.\" https://matthewshotelmarkets.com/hotel-franchise-costs/super-8. Last updated 2026-09-18."
    },
    {
      "title": "How much does a Tapestry Collection franchise cost in 2026?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-franchise-costs/tapestry-collection",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-franchise-costs/tapestry-collection.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Hilton's 2026 Tapestry Collection Franchise Disclosure Document, issued March 30, 2026, estimates $2,861,047 to $70,253,147 to open a typical 125-room hotel, excluding real estate. The width of that range comes from construction, which runs from $0 to $45,954,000. The application fee is $100,000, the monthly royalty is 5 percent of gross rooms revenue and the monthly program fee is 4 percent.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How much does a Tapestry Collection franchise cost in 2026?.\" https://matthewshotelmarkets.com/hotel-franchise-costs/tapestry-collection. Last updated 2026-09-18."
    },
    {
      "title": "How much does a Tru by Hilton franchise cost in 2026?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-franchise-costs/tru-by-hilton",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-franchise-costs/tru-by-hilton.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Hilton's 2026 Tru by Hilton Franchise Disclosure Document, issued March 30, 2026, estimates $14,258,164 to $20,659,558 to open a newly built 98-room hotel, excluding real estate. The franchise application fee is $100,000, the monthly royalty is 5.5 percent of gross rooms revenue, the monthly program fee is 4 percent, and Hilton Honors is 2 percent of total eligible guest folio.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How much does a Tru by Hilton franchise cost in 2026?.\" https://matthewshotelmarkets.com/hotel-franchise-costs/tru-by-hilton. Last updated 2026-09-18."
    },
    {
      "title": "How does the hotel business work?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-industry",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-industry.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A hotel sells room nights, and three parties usually split the work: an owner who holds the real estate and the risk, a brand that licenses its name for a share of rooms revenue, and an operator who runs the building. In 2025 U.S. hotels ran 62.3 percent occupancy at a $160.54 average rate, per CoStar figures reported January 22, 2026.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How does the hotel business work?.\" https://matthewshotelmarkets.com/hotel-industry. Last updated 2026-09-18."
    },
    {
      "title": "What are hotel chain scales and classes?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-industry/chain-scales-and-classes",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-industry/chain-scales-and-classes.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Chain scales are price tiers for hotel brands: luxury, upper upscale, upscale, upper midscale, midscale and economy, with independent hotels grouped separately. STR has said it assigns them by grouping branded hotels on average room rates. The tier matters: CBRE's midyear 2026 outlook has luxury RevPAR growing 5.2 percent this year and economy falling 0.6 percent.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"What are hotel chain scales and classes?.\" https://matthewshotelmarkets.com/hotel-industry/chain-scales-and-classes. Last updated 2026-09-18."
    },
    {
      "title": "How do hotels make money?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-industry/how-hotels-make-money",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-industry/how-hotels-make-money.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Hotels make money mostly by selling rooms. Apple Hospitality REIT reported on February 23, 2026 that rooms were $1,278.4 million of its $1,412.4 million of 2025 revenue, and that its comparable hotels kept 34.3 percent of revenue as hotel-level EBITDA. Host Hotels & Resorts, with large food and beverage operations, reported a 28.9 percent comparable hotel EBITDA margin.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How do hotels make money?.\" https://matthewshotelmarkets.com/hotel-industry/how-hotels-make-money. Last updated 2026-09-18."
    },
    {
      "title": "How big is the US hotel industry in 2026?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-industry/industry-size-2026",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-industry/industry-size-2026.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "AHLA's State of the Industry release of January 27, 2026 forecasts nearly $805 billion of U.S. hotel guest spending in 2026, about 2.2 million direct hotel operations jobs, nearly $131 billion in wages and benefits, and nearly $87 billion in taxes. The Bureau of Labor Statistics counts 1,926,600 accommodation employees in August 2026, a preliminary figure.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"How big is the US hotel industry in 2026?.\" https://matthewshotelmarkets.com/hotel-industry/industry-size-2026. Last updated 2026-09-18."
    },
    {
      "title": "What is the outlook for hotels in 2026 and 2027?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-industry/outlook-2026-2027",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-industry/outlook-2026-2027.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "The public forecasts agree on direction and disagree on size. As of August 7, 2026, CoStar and Tourism Economics forecast U.S. RevPAR growth of 4.4 percent for 2026 and 2.1 percent for 2027. CBRE's midyear 2026 review forecasts 2.5 percent and 2.1 percent. PwC's May 2026 edition forecasts 2.9 percent for 2026. We publish them side by side and do not blend them.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"What is the outlook for hotels in 2026 and 2027?.\" https://matthewshotelmarkets.com/hotel-industry/outlook-2026-2027. Last updated 2026-09-18."
    },
    {
      "title": "What is the difference between a hotel owner, a franchisor and a management company?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-industry/owner-franchisor-management-company",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-industry/owner-franchisor-management-company.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "The owner holds the real estate and takes the profit or loss. The franchisor licenses a brand and its reservation system for a fee on rooms revenue. The management company runs daily operations for a fee on total revenue. At December 31, 2025, Hilton owned or leased 46 of its 9,158 properties, managed 873 and franchised or licensed 8,239.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"What is the difference between a hotel owner, a franchisor and a management company?.\" https://matthewshotelmarkets.com/hotel-industry/owner-franchisor-management-company. Last updated 2026-09-18."
    },
    {
      "title": "What are RevPAR, ADR and occupancy, and what is a good number?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-industry/revpar-adr-occupancy",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-industry/revpar-adr-occupancy.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Occupancy is rooms sold divided by rooms available. ADR is room revenue divided by rooms sold. RevPAR is room revenue divided by rooms available, which equals occupancy times ADR. For 2025, CoStar reported U.S. occupancy of 62.3 percent, ADR of $160.54 and RevPAR of $100.02, in figures published January 22, 2026. A good number is one that beats your competitive set.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"What are RevPAR, ADR and occupancy, and what is a good number?.\" https://matthewshotelmarkets.com/hotel-industry/revpar-adr-occupancy. Last updated 2026-09-18."
    },
    {
      "title": "Who owns hotels in the United States?",
      "kind": "answer",
      "url": "https://matthewshotelmarkets.com/hotel-industry/who-owns-hotels",
      "markdownUrl": "https://matthewshotelmarkets.com/hotel-industry/who-owns-hotels.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Mostly private owners, not the brands on the signs. AAHOA says its members own 36,807 U.S. hotels, 60 percent of the total, citing a study it commissioned from Oxford Economics. AHLA says 57 percent of U.S. hotels are franchised. Hilton owned or leased 46 of its 9,158 properties at December 31, 2025, and public REITs own hundreds of hotels, not tens of thousands.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"Who owns hotels in the United States?.\" https://matthewshotelmarkets.com/hotel-industry/who-owns-hotels. Last updated 2026-09-18."
    },
    {
      "title": "What is my hotel worth? A hotel value estimator that gives a screening range",
      "kind": "tool",
      "url": "https://matthewshotelmarkets.com/tools/hotel-value-estimator",
      "markdownUrl": "https://matthewshotelmarkets.com/tools/hotel-value-estimator.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A first-pass hotel value is NOI divided by a cap rate band, less any PIP still to fund. The Matthews Hotel Index for Q1 2026, published April 15, 2026, puts select-service hotels at 7.50% to 8.75% across its 14 markets. On $1,050,000 of NOI with a $1,100,000 PIP, that is $10,900,000 to $12,900,000. Matthews Hotel Markets calls that a screening range, not a valuation.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"What is my hotel worth? A hotel value estimator that gives a screening range.\" https://matthewshotelmarkets.com/tools/hotel-value-estimator. Last updated 2026-09-18."
    },
    {
      "title": "How big a loan can my hotel support? A hotel loan sizing calculator",
      "kind": "tool",
      "url": "https://matthewshotelmarkets.com/tools/hotel-loan-sizing-calculator",
      "markdownUrl": "https://matthewshotelmarkets.com/tools/hotel-loan-sizing-calculator.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A hotel lender sizes the loan three ways and lends the smallest result. DSCR caps it at NOI divided by the test and the loan constant. Debt yield caps it at NOI divided by the test. LTV caps it at a percent of value. Lenders do not publish those tests, so enter yours. Matthews Hotel Markets' September 2026 rate sheet has the 10-year Treasury at 4.94% on September 17, 2026.",
      "author": "Miles Cortez III",
      "citeAs": "Miles Cortez III, Matthews Hotel Markets. \"How big a loan can my hotel support? A hotel loan sizing calculator.\" https://matthewshotelmarkets.com/tools/hotel-loan-sizing-calculator. Last updated 2026-09-18."
    },
    {
      "title": "Hotel refinance vs sell calculator: which path leaves me more cash?",
      "kind": "tool",
      "url": "https://matthewshotelmarkets.com/tools/refinance-vs-sell",
      "markdownUrl": "https://matthewshotelmarkets.com/tools/refinance-vs-sell.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Size the new loan from NOI, then price the sale from the same NOI. Maximum refinance proceeds are NOI divided by your lender's DSCR test, divided by the loan constant. Net sale proceeds are value at your cap rate, less the PIP, sale costs and the payoff. Matthews Hotel Markets' September 2026 rate sheet shows the 10-year Treasury at 4.94% on September 17, 2026.",
      "author": "Miles Cortez III",
      "citeAs": "Miles Cortez III, Matthews Hotel Markets. \"Hotel refinance vs sell calculator: which path leaves me more cash?.\" https://matthewshotelmarkets.com/tools/refinance-vs-sell. Last updated 2026-09-18."
    },
    {
      "title": "Hotel DSCR calculator: will my loan size?",
      "kind": "tool",
      "url": "https://matthewshotelmarkets.com/tools/dscr-calculator",
      "markdownUrl": "https://matthewshotelmarkets.com/tools/dscr-calculator.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "DSCR is net operating income divided by annual debt service. No hotel lender type publishes its DSCR floor, so enter the test your own lender stated rather than a number off the internet. Matthews Hotel Markets' September 2026 rate sheet marks that cell not yet published for all seven lender types. The 10-year Treasury was 4.94% on September 17, 2026.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"Hotel DSCR calculator: will my loan size?.\" https://matthewshotelmarkets.com/tools/dscr-calculator. Last updated 2026-09-18."
    },
    {
      "title": "Hotel debt yield calculator: how big a loan does my NOI support?",
      "kind": "tool",
      "url": "https://matthewshotelmarkets.com/tools/debt-yield-calculator",
      "markdownUrl": "https://matthewshotelmarkets.com/tools/debt-yield-calculator.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Debt yield is net operating income divided by the loan amount, as a percent. It ignores the rate, the amortization and the appraisal. A hotel with $1,600,000 of NOI and a $12,000,000 loan has a 13.33% debt yield. No lender type publishes its floor, so Matthews Hotel Markets' September 2026 rate sheet prints none. Type the test your lender stated.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"Hotel debt yield calculator: how big a loan does my NOI support?.\" https://matthewshotelmarkets.com/tools/debt-yield-calculator. Last updated 2026-09-18."
    },
    {
      "title": "Hotel cap rate calculator: cap rate, value and price per key",
      "kind": "tool",
      "url": "https://matthewshotelmarkets.com/tools/cap-rate-calculator",
      "markdownUrl": "https://matthewshotelmarkets.com/tools/cap-rate-calculator.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Cap rate is net operating income divided by price. Value is NOI divided by a cap rate. Price per key is price divided by room count. A hotel with $1,050,000 of NOI offered at $12,000,000 is an 8.75% cap rate, and at 78 keys that is $153,846 per key. Matthews Hotel Markets' September 2026 rate sheet shows the 10-year Treasury at 4.94% on September 17, 2026.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"Hotel cap rate calculator: cap rate, value and price per key.\" https://matthewshotelmarkets.com/tools/cap-rate-calculator. Last updated 2026-09-18."
    },
    {
      "title": "Hotel Cap Rate",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/cap-rate",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/cap-rate.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A hotel cap rate is the property's stabilized net operating income divided by its purchase price, expressed as a percentage. It is the unlevered first-year yield a buyer accepts.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"Hotel Cap Rate: definition.\" https://matthewshotelmarkets.com/glossary/cap-rate. Last updated 2026-09-18."
    },
    {
      "title": "RevPAR (Revenue Per Available Room)",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/revpar",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/revpar.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "RevPAR is revenue per available room. It equals occupancy multiplied by ADR, or rooms revenue divided by total available room nights. It is the headline performance metric in hotel investment.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"RevPAR (Revenue Per Available Room): definition.\" https://matthewshotelmarkets.com/glossary/revpar. Last updated 2026-09-18."
    },
    {
      "title": "ADR (Average Daily Rate)",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/adr",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/adr.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "ADR, or average daily rate, is a hotel's rooms revenue divided by the number of occupied rooms in the same period. It measures pricing power per night sold.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"ADR (Average Daily Rate): definition.\" https://matthewshotelmarkets.com/glossary/adr. Last updated 2026-09-18."
    },
    {
      "title": "PIP (Property Improvement Plan)",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/pip",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/pip.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A PIP, or property improvement plan, is the brand-mandated capital scope a franchisor requires a hotel owner to complete to maintain or earn a franchise license. It typically runs every 7 to 10 years.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"PIP (Property Improvement Plan): definition.\" https://matthewshotelmarkets.com/glossary/pip. Last updated 2026-09-18."
    },
    {
      "title": "BOV (Broker Opinion of Value)",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/bov",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/bov.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A hotel BOV, or broker opinion of value, is a written valuation prepared by a hotel investment-sales broker that estimates the price an asset would clear in the current market, supported by comp set, financial analysis, and a buyer-pool view.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"BOV (Broker Opinion of Value): definition.\" https://matthewshotelmarkets.com/glossary/bov. Last updated 2026-09-18."
    },
    {
      "title": "IOM / Investment Memorandum / OM",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/iom",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/iom.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "An IOM (investment offering memorandum), also called an OM or offering memorandum, is the marketing book a hotel broker produces to present an asset to qualified buyers during a confidential disposition process.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"IOM / Investment Memorandum / OM: definition.\" https://matthewshotelmarkets.com/glossary/iom. Last updated 2026-09-18."
    },
    {
      "title": "Debt Service Coverage Ratio (DSCR)",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/dscr",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/dscr.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Debt service coverage ratio is net operating income divided by annual debt service. A 1.35x DSCR means a hotel produces 35 percent more cash than the loan needs.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"Debt Service Coverage Ratio (DSCR): definition.\" https://matthewshotelmarkets.com/glossary/dscr. Last updated 2026-09-18."
    },
    {
      "title": "Debt Yield",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/debt-yield",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/debt-yield.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Debt yield is a hotel's net operating income divided by the loan amount, expressed as a percentage. It measures the lender's return if it had to take the asset back.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"Debt Yield: definition.\" https://matthewshotelmarkets.com/glossary/debt-yield. Last updated 2026-09-18."
    },
    {
      "title": "Net Operating Income (NOI)",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/noi",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/noi.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Hotel net operating income is total revenue minus operating expenses, including franchise fees, management fee, taxes, insurance and an FF&E reserve. It excludes debt service, depreciation and income taxes.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"Net Operating Income (NOI): definition.\" https://matthewshotelmarkets.com/glossary/noi. Last updated 2026-09-18."
    },
    {
      "title": "Loan-to-Value (LTV)",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/ltv",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/ltv.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Loan-to-value is the loan amount divided by the hotel's appraised value, as a percentage. A $6.5 million loan on a $10 million appraisal is 65 percent LTV.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"Loan-to-Value (LTV): definition.\" https://matthewshotelmarkets.com/glossary/ltv. Last updated 2026-09-18."
    },
    {
      "title": "FF&E Reserve",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/ffe-reserve",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/ffe-reserve.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "An FF&E reserve is money set aside each year, usually quoted as a percentage of total revenue, to replace a hotel's furniture, fixtures and equipment. HVS called 4 percent of revenues typical in 2014.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"FF&E Reserve: definition.\" https://matthewshotelmarkets.com/glossary/ffe-reserve. Last updated 2026-09-18."
    },
    {
      "title": "MPI, ARI and RGI (STR Index Scores)",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/mpi-ari-rgi",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/mpi-ari-rgi.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "MPI, ARI and RGI are index scores that compare a hotel's occupancy, ADR and RevPAR with its competitive set. A score of 100 is fair share; above 100 means the hotel is taking more than its share.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"MPI, ARI and RGI (STR Index Scores): definition.\" https://matthewshotelmarkets.com/glossary/mpi-ari-rgi. Last updated 2026-09-18."
    },
    {
      "title": "Price Per Key",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/per-key",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/per-key.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Price per key is a hotel's price divided by its number of guest rooms. A 96-key hotel that sells for $11.5 million trades at about $119,800 per key.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"Price Per Key: definition.\" https://matthewshotelmarkets.com/glossary/per-key. Last updated 2026-09-18."
    },
    {
      "title": "Going-Concern Value",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/going-concern-value",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/going-concern-value.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Going-concern value is the value of a hotel as an operating business: real estate, furniture and equipment, and intangibles together. Federal appraisal guidelines dated December 2, 2010 say it may not stand in for market value of the real property.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"Going-Concern Value: definition.\" https://matthewshotelmarkets.com/glossary/going-concern-value. Last updated 2026-09-18."
    },
    {
      "title": "Franchise Comfort Letter",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/comfort-letter",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/comfort-letter.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A comfort letter is a three-party agreement among a hotel franchisor, the owner and the lender. It gives the lender notice of franchise defaults and time to cure them. Hilton's 2025 Hampton document lists a $3,500 processing fee.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"Franchise Comfort Letter: definition.\" https://matthewshotelmarkets.com/glossary/comfort-letter. Last updated 2026-09-18."
    },
    {
      "title": "Franchise Disclosure Document (FDD)",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/franchise-fdd",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/franchise-fdd.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A Franchise Disclosure Document is the 23-item disclosure a franchisor must give a prospective franchisee at least 14 calendar days before signing or paying. For a hotel it is the public source for brand fees, terms and build costs.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"Franchise Disclosure Document (FDD): definition.\" https://matthewshotelmarkets.com/glossary/franchise-fdd. Last updated 2026-09-18."
    },
    {
      "title": "Key Money",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/key-money",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/key-money.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Key money is a cash payment a hotel brand makes to an owner for signing or converting to its flag. It is usually forgiven in equal parts over the franchise term, such as 1/20th a year over 20 years.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"Key Money: definition.\" https://matthewshotelmarkets.com/glossary/key-money. Last updated 2026-09-18."
    },
    {
      "title": "SOFR (Secured Overnight Financing Rate)",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/sofr",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/sofr.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "SOFR is the benchmark rate for most floating-rate commercial loans. It measures the cost of borrowing cash overnight against Treasury securities. It was 3.85 percent on September 17, 2026.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"SOFR (Secured Overnight Financing Rate): definition.\" https://matthewshotelmarkets.com/glossary/sofr. Last updated 2026-09-18."
    },
    {
      "title": "Prime Rate",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/prime-rate",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/prime-rate.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "The prime rate is the base rate banks use to price many business loans, including SBA 7(a) loans. Major banks moved it to 7.00 percent effective September 17, 2026.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"Prime Rate: definition.\" https://matthewshotelmarkets.com/glossary/prime-rate. Last updated 2026-09-18."
    },
    {
      "title": "SBA 7(a) Loan",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/sba-7a",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/sba-7a.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "An SBA 7(a) loan is a bank loan of up to $5 million with a partial federal guaranty. Owner-operators use it to buy, refinance or renovate a hotel, with real estate terms up to 25 years.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"SBA 7(a) Loan: definition.\" https://matthewshotelmarkets.com/glossary/sba-7a. Last updated 2026-09-18."
    },
    {
      "title": "SBA 504 Loan",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/sba-504",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/sba-504.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "An SBA 504 loan is a two-part financing: a bank first mortgage plus a fixed-rate second funded by an SBA-backed debenture. A hotel buyer puts in at least 15 percent. The 25-year debenture priced at 6.54 percent in September 2026.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"SBA 504 Loan: definition.\" https://matthewshotelmarkets.com/glossary/sba-504. Last updated 2026-09-18."
    },
    {
      "title": "Defeasance",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/defeasance",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/defeasance.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Defeasance releases a hotel from a CMBS mortgage by replacing the property with government securities that make the remaining loan payments. Tax rules bar it within 2 years of the securitization's startup day.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"Defeasance: definition.\" https://matthewshotelmarkets.com/glossary/defeasance. Last updated 2026-09-18."
    },
    {
      "title": "Yield Maintenance",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/yield-maintenance",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/yield-maintenance.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Yield maintenance is a prepayment charge that pays the lender the interest it loses when a fixed-rate loan is repaid early. Agency loan documents set it at the greater of 1 percent of the balance or the calculated amount.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"Yield Maintenance: definition.\" https://matthewshotelmarkets.com/glossary/yield-maintenance. Last updated 2026-09-18."
    },
    {
      "title": "Non-Recourse Carve-Outs (Bad-Boy Guaranty)",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/non-recourse-carve-outs",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/non-recourse-carve-outs.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Non-recourse carve-outs are exceptions that make a guarantor personally liable on an otherwise non-recourse loan. They come in 2 kinds: liability for the lender's actual loss, and full recourse for the entire debt.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"Non-Recourse Carve-Outs (Bad-Boy Guaranty): definition.\" https://matthewshotelmarkets.com/glossary/non-recourse-carve-outs. Last updated 2026-09-18."
    },
    {
      "title": "Mezzanine Debt",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/mezzanine-debt",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/mezzanine-debt.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Mezzanine debt is a loan that sits between the first mortgage and the owner's equity. It is secured by the ownership interests in the borrower, not the hotel. In the example below it lifts total debt from 60 to 75 percent of value.",
      "author": "Luke Thompson",
      "citeAs": "Luke Thompson, Matthews Hotel Markets. \"Mezzanine Debt: definition.\" https://matthewshotelmarkets.com/glossary/mezzanine-debt. Last updated 2026-09-18."
    },
    {
      "title": "Competitive Set (Comp Set)",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/comp-set",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/comp-set.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A competitive set is the group of nearby hotels a property is benchmarked against in its STR report. Hilton's 2025 Hampton disclosure document says each hotel generally must identify at least 3 competitors.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"Competitive Set (Comp Set): definition.\" https://matthewshotelmarkets.com/glossary/comp-set. Last updated 2026-09-18."
    },
    {
      "title": "Gross Operating Profit (GOP)",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/gop",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/gop.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Gross operating profit is hotel revenue minus departmental and undistributed operating expenses. It comes before management fees, property taxes, insurance and the FF&E reserve, so it is always higher than NOI. In the example below it is 49.0 percent of revenue.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"Gross Operating Profit (GOP): definition.\" https://matthewshotelmarkets.com/glossary/gop. Last updated 2026-09-18."
    },
    {
      "title": "Ground Lease",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/ground-lease",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/ground-lease.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A ground lease is a long-term lease of the land under a hotel. The hotel owner owns the building and pays ground rent. For an SBA 504 loan, the lease must run at least as long as the debenture, up to 25 years.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"Ground Lease: definition.\" https://matthewshotelmarkets.com/glossary/ground-lease. Last updated 2026-09-18."
    },
    {
      "title": "Hotel Franchise Agreement",
      "kind": "glossary",
      "url": "https://matthewshotelmarkets.com/glossary/franchise-agreement",
      "markdownUrl": "https://matthewshotelmarkets.com/glossary/franchise-agreement.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "A hotel franchise agreement is the long-term license that lets an owner operate under a brand in exchange for fees. Hilton's 2025 Hampton terms run 22 years for new construction, with a 6 percent royalty on rooms revenue.",
      "author": "Nate Solomon",
      "citeAs": "Nate Solomon, Matthews Hotel Markets. \"Hotel Franchise Agreement: definition.\" https://matthewshotelmarkets.com/glossary/franchise-agreement. Last updated 2026-09-18."
    },
    {
      "title": "Hotel Loan Rate Sheet, September 2026. What the public benchmarks say, and what we have not published yet.",
      "kind": "data",
      "url": "https://matthewshotelmarkets.com/rates",
      "markdownUrl": "https://matthewshotelmarkets.com/rates.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "As of September 17, 2026, the 10-year Treasury is 4.94%, the 5-year is 4.78%, SOFR is 3.85%, and Prime is 7.00%. SBA caps a variable-rate 7(a) loan over $350,000 at Prime plus 3.00%, which is 10.00% today. The 25-year SBA 504 debenture priced at 6.54% on September 10. Rows that depend on what lenders are actually quoting are marked not yet published.",
      "author": null,
      "citeAs": "Matthews Hotel Markets. \"Hotel Loan Rate Sheet, September 2026.\" https://matthewshotelmarkets.com/rates. Published 2026-09-17."
    },
    {
      "title": "How the rate sheet is built. Sources, definitions, and what we refuse to publish.",
      "kind": "data",
      "url": "https://matthewshotelmarkets.com/rates/methodology",
      "markdownUrl": "https://matthewshotelmarkets.com/rates/methodology.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "Every cell on the rate sheet is one of three things: a public benchmark with a link, a published program rule with a link, or an observation from term sheets this desk actually received. Anything that is none of those reads “not yet published” and carries no number.",
      "author": null,
      "citeAs": "Matthews Hotel Markets. \"Rate Sheet Methodology.\" https://matthewshotelmarkets.com/rates/methodology. Last updated 2026-09-18."
    },
    {
      "title": "Hotel financing statistics. Every number with a source, a source date, and the date we last checked it.",
      "kind": "data",
      "url": "https://matthewshotelmarkets.com/data/hotel-financing-statistics",
      "markdownUrl": "https://matthewshotelmarkets.com/data/hotel-financing-statistics.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "54 statistics on hotel debt and hotel investment, as of September 17, 2026. The 10-year Treasury is 4.94%, SOFR is 3.85%, and SBA caps a variable-rate 7(a) hotel loan over $350,000 at Prime plus 3.00%, which is 10.00% with Prime at 7.00% since September 17. Each entry below links its publisher and carries two dates: the date on the source, and the date a person here last opened it.",
      "author": null,
      "citeAs": "Matthews Hotel Markets. \"Hotel Financing Statistics, 2026.\" https://matthewshotelmarkets.com/data/hotel-financing-statistics. Last updated 2026-09-18."
    },
    {
      "title": "SBA loans to hotels: who lends, how much, and where",
      "kind": "data",
      "url": "https://matthewshotelmarkets.com/data/sba-hotel-lending",
      "markdownUrl": "https://matthewshotelmarkets.com/data/sba-hotel-lending.md",
      "lastUpdated": "2026-09-18",
      "directAnswer": "In fiscal year 2025 (October 1, 2024 to September 30, 2025), SBA approved 686 7(a) loans to hotels and motels for $1.91 billion and 365 504 loans for $990.5 million, per SBA loan-level data as of June 30, 2026. The median 7(a) hotel loan was $2.68 million. GBank is the lender named on the most 7(a) hotel loans approved from FY2023 to FY2025: 303.",
      "author": null,
      "citeAs": "Matthews Hotel Markets. \"SBA Loans to Hotels: Who Lends, How Much, and Where.\" https://matthewshotelmarkets.com/data/sba-hotel-lending. SBA data as of 2026-06-30. Last updated 2026-09-18."
    },
    {
      "title": "Who Matthews Hotel Markets is. What we do, where, and who to call.",
      "kind": "about",
      "url": "https://matthewshotelmarkets.com/about",
      "markdownUrl": "https://matthewshotelmarkets.com/about.md",
      "lastUpdated": "2026-09-17",
      "directAnswer": "Matthews Hotel Markets is the hospitality investment sales and capital markets team of Matthews Real Estate Investment Services, based at 515 Congress Ave. in Austin, Texas. The team sells hotels from $2 million and places hotel debt from $5 million, nationwide.",
      "author": null,
      "citeAs": "Matthews Hotel Markets. \"About Matthews Hotel Markets.\" https://matthewshotelmarkets.com/about. Last updated 2026-09-17."
    }
  ]
}